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HI john, i hope u doing good.
management accountant estimates that for each increment of 50,000 units produced,
one supervisor will need to be employed.i have extracted the above statement from September 2016 exam. my question is how many supervisors do we need at the activity level of 210,000 units.
my answer is 4 supervisors.
exam answer 5 supervisors.The exam answer is correct.
If they only have 4 supervisors then they could only deal with 4 x 50,000 = 200,000 units.
In order to produce an extra 10,000 units they will need 1 more supervisor (since it is impossible to have just a fraction of a supervisor 🙂 ).
thanks john for your replay.
can’t we say that one supervisor stars with the production, and then for each increment of 50,000 units produced, one supervisor will need to be employed. since supervisor is needed to start with production.
thanks in advance.
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