1. A company specialises in printing advertising leaflets and is in-the-process of preparing its price list. The...
Question:
1. A company specialises in printing advertising leaflets and is in-the-process of preparing its price list. The most popular requirement is for a folded leaflet made from a single sheet of A4 paper. From past records and budgeted figures, the following data have been estimated for a typical batch of 12,000 leaflets.
Artwork GH¢ 130
Machine setting 8 hours at GH¢ 44 per hour
Paper GH¢ 25 per 2,000 sheets
Ink and consumables GH¢ 40
Printers wages 8 hours at GH¢ 16 per hour
General fixed overheads are GH¢ 30,000 per period during which a total of 600 labour hours
are expected to be worked.
The firm wishes to achieve 30% profit on sales.
Required
i. Calculate the batch cost
ii. Calculate the selling price per thousand leaflets for quantities of 12,000 and 24,000 leaflets.
iii. Calculate the profit for the period if 64 batches of 12,000 and 36 batches of 24,000 were sold and costs and revenues were as budgeted.
Essentials of Database Management
ISBN: 978-0133405682
1st edition
Authors: Jeffrey A. Hoffer, Heikki Topi, Ramesh Venkataraman