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What the relevant cost for the order is

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Problem 1: A company has 5 employees who have a cost of $100 per day each but currently have no work to do; this situation is expected to last for the next two weeks. The company is considering accepting a special order that will take 5 employees one week each, commencing immediately. The work will require supervision, equivalent to 10% of the variable labour time, but all of the supervisors are very busy. Supervision costs are normally $200 per day but additional supervision will involve overtime at the rate of $300 per day. The relevant cost for the order is:

Select one:

a. $750
b. $1,250
c. $3,000
d. $3,250

Reference no: EM132716463

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