pcr Dec 2009

Terdoo

Can someone help with the energy on flexed budget, i don,t know how they got £161,000
on task 2.2? a simple calculation please.


Thanks in advance

SandyHood

• The budget for energy is semi-variable. The variable element is £2.00 per pack.

So use the budget provided to find the fixed element
Total cost for 63,000 units ..... £151,000
Variable cost £2.00 x 63,000.... £126,000
Fixed cost element (difference).. £25,000

So for 68,000 units the total cost would be £2 x 68,000 + £25,000