Please help! I have come across these questions and cannot appear to find it in any of my textbooks.

Please could someone walk me through them?


  • PeterC
    PeterC Registered, Tutor Posts: 225
    The first question doesn't require a textbook, it is more a test of comprehension (of the data supplied), than of knowledge. You do need to understand what is meant by "batch size" and "set up" but searching the internet will cover this, if required.

    Domestic paints:
    Part (c) is easiest, so will do that first.
    Machine set up costs are 150,000, presumably £, to make 100,000 cans
    So set up cost per can is £1.50 (£150,000 / 100,000 cans)

    100,000 cans to be made in batches (groups) of 1,000 so there will be 100 batches (100,000/1,000)
    Every time you make a new batch on a machine it needs to be adjusted (set up), so there will be 100 set ups

    Machine set up costs are £150,000
    so that is £1,500 per set up (£150,000 / 100 set ups)

    If this made sense to you, then I guess you can do the Industrial paints

    The second question is about a limited resource (kg of pigment). This should be in your textbook (it may be called "limiting factor"), or you can look for "Limited resource" here:

  • gg25
    gg25 Registered Posts: 10
    Thank you for the above! Will make sure to check out the link.
  • PeterC
    PeterC Registered, Tutor Posts: 225
    You're welcome
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