- This topic has 2 replies, 3 voices, and was last updated 9 years ago by .
Viewing 3 posts - 1 through 3 (of 3 total)
Viewing 3 posts - 1 through 3 (of 3 total)
- You must be logged in to reply to this topic.
OpenTuition recommends the new interactive BPP books for March 2025 exams.
Get your discount code >>
Forums › FIA Forums › MA1 Management Information Forums › material usage
Each finished unit of Product X contains 1.4 litres of Material Y.10% of meterial Y used is losed in processing.Sales and Production of Product X in a period were 21000 and 20200 units respectively.
What was the usage of Material Y in the period ?
20200 were produced. if there were no losses, the material used would be:
20200 x 1.4 = 28280
but there is a loss, which is 10%. this means we wd need to use extra bit of 10%. If A is the total material to be used, this means:
A – 10%A = 1.4
0.9A=1.4
A=1.4/.9 = 1.56
thus total material used = 1.56 x 20200 = 31,512
Any one of you have more questions like this that can be posted so I can get a better understanding of this topic.