Explain the calculation of unit costs and make pricing decisions using

Explain the calculation of unit costs and make pricing decisions using relevant information

 
Project description
A printing company receives an order for 100,000 leaflets of A5 size printed in blank ink .the cost estimator has prepared the following estimate of resources required to the job.
Direct cost:
Paper – 204 reams of A4 at £3 per reams
Ink- 2 litres as £9 per litre
Labour time – 2 hours at £15 per hour
Indirect costs:
Production overhead and machine utilization -2 hours at £55 per hour
Selling distribution and administration overheads are recovered by charging £20 per hour and the company requires a 10% mark- up on selling price.
You are required to:
1.explain how you would arrive at the total cost for the job and the cost per leaflet.
2. Calculate the total production cost.
3. Calculate the price that the company must quote for the job.
4. Re-estimate the price that the company must quote if :
a .the budgeted number of hour that the job requires is readjusted to 2.5 hours
b. the budgeted number of hour that the job requires is readjusted to 1.5 hours

PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET AN AMAZING DISCOUNT 🙂