TASK 7
Mannaesi
Registered Posts: 80
HELLO GOOD PEOPLE,KINDLY NEED YOUR HELP HERE(SHOWING WORKINGS PLEASE)....ANYBODY?THANKS IN ADVANCE.
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Hi, please see my workings as below. Hopefully it matches the answer you have to the question.
Savings in materials Reduces by 3% per unit to 17.85  55p saving per unit x 25000 = £13,750
Savings direct labour  Current cost is £5.50 per unit x 25000 units = 137,500, will cost 130,625 (5% less). Savings of £6,875.
Savings variable power  Currently costs .30 x 25,000 = £7500 , with savings of 20% reduces to £6000. Savings of £1500.
Increased fixed machine costs  depreciation increases it by £20,000
Profit/loss  Total savings less increased depreciation expense, comes to £2125 savings.
To get the percentage decrease, for example to work out 20% decreased cost, just multiply by the rest of the percentage out of 100, i.e. what will be left, so multiply in your calculator by 0.80 / 80% which is 100 % minus 20%.0