What is the maximum price that the business should be

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Reference no: EM131881334

A. Choudray (Engineering) Ltd makes a product that is sold for £53 per unit and has the following costs per unit.

Variable material cost 10

Variable labour cost 24

Share of fixed costs 12
46

The labour cost includes three hours' charge for assemblers who are paid £6 per hour. The business is considering sub-contracting the assembly work as demand for the product outstrips the ability of the business to assemble the parts that are produced to make the product.

What is the maximum price that the business should be prepared to pay to have one unit of the product assembled?

The price is £. (round to full £)

Reference no: EM131881334

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