Question

Production of shampoo... Liquid: 5,000L at 50p per litre Powder: 5kg at £19 per kg Labour:...

Production of shampoo...

Liquid: 5,000L at 50p per litre

Powder: 5kg at £19 per kg

Labour: 80 hours at £9 per hour

Overheads estimated at £12 per labour hour

Normal Loss is 5% of input

What is the cost per litre?

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Answer #1
Particular Amount
Liquid 2500
Powder 95
Labour 720
Overhead 960
Total Cost 4275
Total Input units 5000
Normal Wastage 250
Normal Units 4750
Cost per litre 0.90
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