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Boysen Industries manufactures outdoor paints used for the facade of high rise buildings. The company plans to introduce a new paint variant that is able to withstand harsh weather conditions. The new paint is made by combining Protein D with a solution (Salcomb) which will be heated to boiling point and thereafter, the colouring agent (Texta) is added. The resulting paint will be packaged in 10 litre containers. The initial mix, which is 11 litres in volume, consists of 15 kilograms of Protein D and 8 litres of Salcomb. A reduction in volume by 1 litre happens during the boiling process. The resulting solution is cooled slightly before 3 kilograms of of Texta are added. Texta evaporates so it does not affect the final liquid volume. The purchase prices of the raw materials used in the manufacture of the new paint variant are as follows: Protein D $2.90 per kilogram Salcomb $3.50 per litre Texta $5.80 per kilogram Determine the standard material cost of a 10 litre container of the new paint for Boysen Industrics. (7 marks)

Boysen Industries manufactures outdoor paints used for the facade of high rise buildings. The company plans to introduce a new paint variant that is able to withstand harsh weather conditions. The new paint is made by combining Protein D with a solution (Salcomb) which will be heated to boiling point and thereafter, the colouring agent (Texta) is added. The resulting paint will be packaged in 10 litre containers. The initial mix, which is 11 litres in volume, consists of 15 kilograms of Protein D and 8 litres of Salcomb. A reduction in volume by 1 litre happens during the boiling process. The resulting solution is cooled slightly before 3 kilograms of of Texta are added. Texta evaporates so it does not affect the final liquid volume. The purchase prices of the raw materials used in the manufacture of the new paint variant are as follows: Protein D $2.90 per kilogram Salcomb $3.50 per litre Texta $5.80 per kilogram Determine the standard material cost of a 10 litre container of the new paint for Boysen Industrics. (7 marks)

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
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Boysen Industries manufactures outdoor paints used for the facade of high rise buildings. The company plans to introduce a new paint variant that is able to withstand harsh weather conditions. The new paint is made by combining Protein D with a solution (Salcomb) which will be heated to boiling point and thereafter, the colouring agent (Texta) is added. The resulting paint will be packaged in 10 litre containers. The initial mix, which is 11 litres in volume, consists of 15 kilograms of Protein D and 8 litres of Salcomb. A reduction in volume by 1 litre happens during the boiling process. The resulting solution is cooled slightly before 3 kilograms of of Texta are added. Texta evaporates so it does not affect the final liquid volume. The purchase prices of the raw materials used in the manufacture of the new paint variant are as follows: $2.90 per kilogram $3.50 per litre Protein D Salcomb Texta $5.80 per kilogram Determine the standard material cost of a 10 litre container of the new paint for Boysen Industrics. (7 marks)
Transcribed Image Text:Boysen Industries manufactures outdoor paints used for the facade of high rise buildings. The company plans to introduce a new paint variant that is able to withstand harsh weather conditions. The new paint is made by combining Protein D with a solution (Salcomb) which will be heated to boiling point and thereafter, the colouring agent (Texta) is added. The resulting paint will be packaged in 10 litre containers. The initial mix, which is 11 litres in volume, consists of 15 kilograms of Protein D and 8 litres of Salcomb. A reduction in volume by 1 litre happens during the boiling process. The resulting solution is cooled slightly before 3 kilograms of of Texta are added. Texta evaporates so it does not affect the final liquid volume. The purchase prices of the raw materials used in the manufacture of the new paint variant are as follows: $2.90 per kilogram $3.50 per litre Protein D Salcomb Texta $5.80 per kilogram Determine the standard material cost of a 10 litre container of the new paint for Boysen Industrics. (7 marks)
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