ECR help June 08 paper

aren87

Im in urgent need of help,im stuck on task 2.4 on the june 08 paper.

i dont know how to get the correct answer for contribution/machine hour.

Rinske

In the table given, you calculate the contribution per unit on the first line.

In the second line you calculate the machine hours used per unit.

For product A the contribution per unit is 1.03. (Which you calculated in task 2.2).
To produce 300,000 products you need 60,000 machine hours so 60 divided by 300 is 0.2
The 0.2 basically tells you that you can produce 5 products per hour. Or that 1 product takes 0.2 hours to complete.

The contribution per machine hour is then 1.03 divided by the 0.2 is 5.15.

Or it might be easier to remember as 5 products per hour, so 1.03 times 5 is 5.15.

Hope this helps!

Cheers,
Rinske

keane155

Hi,

You need to work to the contribution per unit and the machine hours per unit. You then need to divide the contribution per unit by the machine hours per unit.

Hope this helps.

aren87

thanx guys. i was trying all sorts to get the number .