But both players raising their prices simultaneously may be regarded as

But both players raising their prices simultaneously

This preview shows page 2 - 4 out of 4 pages.

Image of page 2
Direct Labour $0.74 Material $0.40 Material Spoilage $0.038 Direct Dept Exp $0.1 Total Relevant cost $1.278 Price $3 Contribution $1.722 Total Contribution $258,300 Following 2nd Alternative From Exhibit 2 we find that at production level of 125,000 units the relevant costs for BTC are:- Direct Labour $0.76 Material $0.40 Material Spoilage $0.038 Direct Dept Exp $0.1 Total Relevant cost $1.298 Price $3 Contribution $1.70 Total contribution = 125000*1.70= $212,750 For C & P corresponding production =100,000 Direct Labour $0.78 Material $0.40 Material Spoilage $0.040 Direct Dept Exp $0.112 Total Relevant cost $1.332 Price $3 Contribution $1.67
Image of page 3
Image of page 4

You've reached the end of your free preview.

Want to read all 4 pages?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture