- This topic has 1 reply, 1 voice, and was last updated 7 years ago by .
- You must be logged in to reply to this topic.
PQ Awards Nominations
Please help us to win one of the PQ Magazine awards and send in the voting form >>
You can nominate us in any or all of the following categories: Online College of the Year, Study Resource of the Year, Private Sector Lecturer of the Year, and Accountancy Personality of the Year.
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
Question Robber Co (6/12)
variable cost (machine setup cost) of making in batches of 500 is 22000, now they are changing to batches of 400. what will be the cost now?
in the answer 22000 is multiplied by 500/400. this gives a higher cost than before, which is when they were produced in batches of 500. i thought this change would decrease the setup cost and the answer should be calculated by cross multiplying, 22000 multiplied by 400/500. could you explain?
please ignore this question. thankyou