Question

ABC Motors Ltd has designed a radically new concept in racing bikes with the intention of selling them to professional racing teams. The estimated cost and selling price of the first bike to be manufactured and assembled is as follows: Materials 1,000 Assembly Labour (50 hours at $10 per hour) 500 Fixed Overheads (200% of Assembly labour) 1,000 Profit (20% of total cost) 500 - - - - Selling Price $3,000 ABC Motors Ltd plans to sell all bikes at total cost plus 20% and the material cost per bike will remain constant irrespective of the number sold.

show calculations please

Answer 1

Solution Bike fixad ol labour Mabriol Boles Pire Cost (c) c) e 1G00 2500 300D 2nd FO%. of sop 2400 28&O $480 400 3nd 80l.of you 1000 1000 2320 464 2984 34S 2,367 2,256 I000 256 2,646 5 000 &s%.2S6 100D 2, 205 -3 205 S433 32,59 6 1600 80%f 205 1000 2,16 164 26 2,557 2,131 1D00 131 2,165 421 8000 2,526 To hak Price 21,69a

2,&&O 1Price of secend bite 2Averae price of 3d&4h bike 012 2784 27o 17 2745.SO Tota Price 21/69 Price 2169コ18 biKe Pes =2,1 2.13
Kindly note that fixed overhead will not change due to learning curve.
2,&&O 1Price of secend bite 2Averae price of 3d&4h bike 012 2784 27o 17 2745.SO Tota Price 21/69 Price 2169コ18 biKe Pes =2,1 2.13