- This topic has 3 replies, 2 voices, and was last updated 3 years ago by
.
Viewing 4 posts - 1 through 4 (of 4 total)
- Posts
House Co also plans to manufacture 90 sofas in June.
Materials 10m of fabric @$50 per meter =$500
How many metres of fabric should be purchased if 10% of material is wasted during production process?
Answer
90 * 10m = 900m
Plus waste 100m
Purchase 1000mSir John, I don’t understand how they got the 100m
For every 100 metres of fabric the buy, the 10% (i.e. 10 metres) will be wasted and only 90 meters will be available for production.
Putting it the other way round, for every 90 needed for production they will need to buy 100.
Viewing 4 posts - 1 through 4 (of 4 total)
- The topic ‘Costing’ is closed to new replies.