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The question is get total productions costs if production is 80% of the maximum capacity.
Sir, i tried to continue from where u stopped just to practice questions as my exams approaches.
The 80% activity level of 262,500 units was 210,000 units,
Variable costs total per units was $4+ $5.5= $9.50
Making a total variable costs of $9.50 * 210,000 = $1,995,000
Fixed costs = $750,000
cost for one supervisor was $35,000
Total supervisor was calculated to be $175,000 which i do not get
Though the questions says the management accountant estimated that for each increment of 50,000 units, one supervisor will be needed to be employed.
How, did they arrive at 5 supervisors to get the costs $175,000
With this costs added together the answer surely will be $2,920,000.Kindly assist .
The question says that 1 supervisor will be needed for each increment (extra) 50,000 units produced.
Therefore they will need 5 supervisors.
Yes exactly but how do i easily calculate it to arrive at 5 supervisors for the extra 50000units ? Sorry my head can¨t just figure it.
Thanks in advance .
For 50,000 they need 1 supervisor
100,000 is an extra 50,000 and so they need 2
For 150,000 they need 3
For 200,000 they need 4
For the extra 10,000 they need 1 more, so 5 in totalI know i can always count on you because you are the best .
I never reasoned it this way because i have much topics revisions on my brain.Any time i remember how i easily passed F3 and F2 through your lectures i am always motivated . Thank you so much and may you live longer for us.
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