PEV Dec 07 2.2

joerd84

Hi

Can anyone help me figure out the Depreciation and tea processor operators on this question? I've got no idea how it's came to those amounts.

Thanks

wolfe

hi

depreciation calculation :
(1) pickmaster:
the annual depreciation charge per pickmaster is given as £2,000.
if u multiply this by 8 ,this will give the total annual depreciation charge for 8 pickmaster
8 pickmaters x £2,000=£16,000

(2) pickmaster 2 :
the annual depreciation charge is given as £9,000.
so £9,000 x 8 pickmaster 2s= £72,000

tea processor operator calculation :
(1) pickmaster:

no. of operators required per day for each machine= 10
no. of machines =8
no. of harvest days = 100 days
cost of operators per day=£6
so the total operator cost is 10x8x100x6 =£48,000

(2)pickmaster 2 :
no of processor operators required per machine =1
no of machines= 8
no of harevest days= 100
cost per day per operator=£6

so total operator cost is 1x8x100x6 =£4,800

joerd84

ah right, thanks alot. I wasn't taking into account the number of machines