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Dear Ken
I am not sure about the question am i supposed to calculate total cost of production of standard and bespoke windows. It is necessary to calculate the total production cost and daily contribution for both production types as they have been done in the examiner’s answer. How do I calculate the average window wastage per day.
My concern is because of the limited time will i be able to do all this in the exam.
I will really appreciate your help
Sohaib Naseem
The question says you are to evaluate “…the financial case for EITHER producing and selling standard windows only OR producing and selling bespoke windows only..” so I don’t see any way that you should not attempt to calculate the contribution under both schemes. I think it’s a difficult question.
The wastage rates are given in the question as 2% and 5% of a day’s production.
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