Q8: Goodwill Electronics Company, a mobile charger manufacturing company manufactures 4000 chargers per month and company incurs material cost RO 5 per unit, cost of labor RO 3 per unit and other manufacturing overheads RO 2 per unit. Goodwill electronics pays RO 2000 per month as a rent. Company adds 20% profit on total cost and distributes the chargers to retailers. a) What would be the total cost of producing 4000 chargers? b) Al Maha Retail Stores recently bought 4000 chargers from the Goodwill Electronics. How much amount Al Maha Retail Store paid to buy the 4000 chargers? c) What would be the components of other manufacturing overheads? Describe with examples
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
Q8: Goodwill Electronics Company, a mobile charger manufacturing company manufactures 4000 chargers per month and company incurs material cost RO 5 per unit, cost of labor RO 3 per unit and other manufacturing overheads RO 2 per unit. Goodwill electronics pays RO 2000 per month as a rent. Company adds 20% profit on total cost and distributes the chargers to retailers.
a) What would be the total cost of producing 4000 chargers?
b) Al Maha Retail Stores recently bought 4000 chargers from the Goodwill Electronics. How much amount Al Maha Retail Store paid to buy the 4000 chargers?
c) What would be the components of other manufacturing overheads? Describe with examples
Number of chargers produced per month, N = 4,000
Material cost, C1 = RO 5 per unit,
Cost of labor, C2 = RO 3 per unit
and other manufacturing overheads, C3 = RO 2 per unit.
Goodwill electronics pays R = RO 2,000 per month as a rent.
Company adds M = 20% profit on total cost and distributes the chargers to retailers.
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