# Help with Q14 Osborne online test one

jane
Well-KnownPosts:

**165**Registered
Please could someone help with this

Sales - the demand is expected to average 8000 units per month, at a selling price of £12.00 per unit

Materials - the product requires 0.5 kg of material U for each unit

Labour - each unit requires 12 minutes of labour at £18 per hour.

Overheads - the product would be manufactured in a seperate facotry, with total fixed production overheads of £16000 per month

Profit - the grss margin required is at least 25%

Max prod cost per unit = £9.00

Build up of max prod cost per unit

Materials = £3.40

Labour = £3.60

Overheads = £2.00

What is the max cost per kilo for Mat U ?

I have been looking at this so long now I probably can't see the obvious!!

Appreciate anyone that could help me

Thanks

Sales - the demand is expected to average 8000 units per month, at a selling price of £12.00 per unit

Materials - the product requires 0.5 kg of material U for each unit

Labour - each unit requires 12 minutes of labour at £18 per hour.

Overheads - the product would be manufactured in a seperate facotry, with total fixed production overheads of £16000 per month

Profit - the grss margin required is at least 25%

Max prod cost per unit = £9.00

Build up of max prod cost per unit

Materials = £3.40

Labour = £3.60

Overheads = £2.00

What is the max cost per kilo for Mat U ?

I have been looking at this so long now I probably can't see the obvious!!

Appreciate anyone that could help me

Thanks

## Comments

144RegisteredI think material U is = Material cost 3.40/0.5 = £6.80 maximum material cost

Hope this help

165RegisteredGetting very worried now as my exam is on Wednesday afternoon, and I really dont think I am ready for this one at all. I have worked so darn hard on this too.

Thanks again