a.
To find: The average cost of each hat.
The average cost of each hat is
Given:
The total number of hats manufactured per week is
Formula used:
Calculation:
The total cost will be equal to making price of each hat multiplied by number of hats produced each week and the overhead cost.
Number of hats sold per week is
Conclusion:
The average cost of each hat is
Where,
b.
To find: The number of hats to be sold to make a profit.
The number of hats to be sold is
Given:
The total number of hats manufactured per week is
Calculation:
The total cost will be equal to making price of each hat multiplied by number of hats produced each week and the overhead cost.
The total selling of hats will be equal to number of hats sold multiplied by selling price of each hat.
Equate the cost price and the selling price to find the value of
Conclusion:
The number of hats to be sold to make profit is
c.
To find: The number of hats to be sold to make a profit of
The number of hats to be sold is
Given:
The total number of hats manufactured per week is
Concept used:
The profit is always equal to total selling price minus total cost price.
Calculation:
The total cost will be equal to making price of each hat multiplied by number of hats produced each week and the overhead cost.
The total selling of hats will be equal to number of hats sold multiplied by selling price of each hat.
Subtract the cost price from the selling price and equate to the profit of
Conclusion:
The number of hats to be sold to make a profit of
Chapter 2 Solutions
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