J Ltd specializes in printing advertising leaflets and is in the process of preparing its price list.
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Question:
J Ltd specializes 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 has been estimated for a typical batch of 10,000 leaflets:
Artwork $65
Machine set up 4 hours @ $22 per hour
Paper $12.50 per 1,000 sheets
Ink and consumables $40
Printer’s wages 4 hours at $8 per hour
Note: Printer’s wages vary with volume
General fixed overheads are $15,000 per period during which a total of 600 labor hours are expected to be worked
Required:
Calculate cost for 10,000 and 20,000 leaflets
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