ecuriPrint Ltd produces pre-printed cheques for customers to use in automated account payable departments. The cheques include personalised customer details. A new customer has ordered a batch of 3,000 cheques. The following data illustrate SecuriPrint’s cost for a typical batch of 1,000 cheques: £ Variable materials 72.00 Variable wages 24.00 Machine set up (fixed per batch *) 7.20 Design and artwork (fixed per batch *) 36.00 139.20 * The design and machine set up costs are fixed per batch regardless of the batch size. SecuriPrint absorbs production overhead at a rate of 10% of variable wages cost. A further 5% is added to the total production cost of each batch to allow for selling, distribution and administration overhead. SecuriPrint requires a profit margin of 40% of sales value. The selling price for a batch of 3,000 cheques should be:
22. SecuriPrint Ltd produces pre-printed cheques for customers to use in
automated account payable departments. The cheques include personalised
customer details. A new customer has ordered a batch of 3,000 cheques. The
following data illustrate SecuriPrint’s cost for a typical batch of 1,000
cheques:
£
Variable materials 72.00
Variable wages 24.00
Machine set up (fixed per batch *) 7.20
Design and artwork (fixed per batch *) 36.00
139.20
* The design and machine set up costs are fixed per batch regardless of the
batch size.
SecuriPrint absorbs production overhead at a rate of 10% of variable wages
cost. A further 5% is added to the total production cost of each batch to allow
for selling, distribution and administration overhead.
SecuriPrint requires a profit margin of 40% of sales value.
The selling price for a batch of 3,000 cheques should be:
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