Dec04
In today's economy it's vital to get the most you can for your spending dollar. So there's no rationale to over pay for Expansion Cabinet when there are a lot of of them for sale on eBay. Plus, eBay is one of the largest and most reliable online shopping sites in the entire world. This site is authorized by eBay to help you find the Expansion Cabinet you are hunting for and show them to you. If you don't see the Expansion Cabinet you are hunting for below. Use the search function on the right to find the kind you want.
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HELP Business Studies!!?
Brand: Elaborate
Selling price (£): 700
Direct materials (£): 300
Direct labour (£): 160
Variable overheads (£): 120
Fixed overheads(£): 100
Maximum demand: 200
2.You are told that several part-time staff who can be employed flexibly has now become available and that the small workshop next to the business’s existing premises has now become available. The partners are considering expanding its production capacity to the small workshop. If the expansion takes place, production of the elaborate cabinets could be increased by 20% per month, but there would be additional annual fixed costs of £35,000.
(a)Calculate the incremental profit or loss that could be earned from the proposed expansion.
How do I work out a 20% increase?
From the figures above its not clear how many Cabinets you can make a month / week.
If you are making more than 200 then no point on expanding as the demand is not there for the product
I can only assume the V.Oheads + F/o/heads are per unit made?
If that is the case you only make £20/unit before an additional £35,000 incrase in costs
Bottom line work out max capacity you can produce currently.. Once you know that add 20% then see what it costs with the added fixed costs taken into account.
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Tags: broadband