how Complete Solution: Lifeline Co. is considering undertaking a one-off building project. The project will use 2 different types of window, standard and decorative. Standard windows currently cost P40 each and the project will require 20,000 of these. Decorative brick currently costs P120 each and the project will require 2,000 of these. Birkin has 7,000 standard windows in stock which cost P30 when they were purchased 3 months ago. These are used in all projects undertaken by Birkin and there are 3 other projects in progress at the moment. Birkin has 300 decorative windows in stock which cost P150 when they were purchased. They do not expect to use the decorative type on future projects and could sell any that they have for their current cost price less 10% as some are damaged. What is the total relevant cost of the windows for consideration of the project?
Show Complete Solution:
Lifeline Co. is considering undertaking a one-off building project.
The project will use 2 different types of window, standard and decorative.
Standard windows currently cost P40 each and the project will require 20,000 of these.
Decorative brick currently costs P120 each and the project will require 2,000 of these.
Birkin has 7,000 standard windows in stock which cost P30 when they were purchased 3 months
ago. These are used in all projects undertaken by Birkin and there are 3 other projects in
progress at the moment.
Birkin has 300 decorative windows in stock which cost P150 when they were purchased. They
do not expect to use the decorative type on future projects and could sell any that they have for
their current cost price less 10% as some are damaged.
What is the total relevant cost of the windows for consideration of the project?
Step by step
Solved in 2 steps
