A company has 5 employees who have a cost of £100 per day each but currently have no work to do and this situation is expected to last for the next two weeks. The company is considering accepting a special order that will take 5 employees one week each, commencing immediately. The work will require supervision, equivalent to 10% of the direct labour time, but all supervisors are very busy. Supervision costs are normally £200 per day but additional supervision will involve overtime at the rate of £300 per day. The relevant cost for the order is:
a) £750

  • CreatedSeptember 15, 2015
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