Mathematics · Cost Accounting
Charles runs a printing business. He estimates that his printing machine will need to be set up 200 times per month at a total monthly cost of $80,000. Item 2145 has to be printed in batches of 50 copies, where each batch requires the machine to be set up twice. Charles expects the annual demand for item 2145 to be 5,000 copies. What amount should be charged to each copy of item 2145 for set-up costs?
- 1$26
- 2$24
- 3$16✓
- 4$12
Correct answer
$16
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