Question

The production cost is R293250,computing components cost is R1035,labour cost is R4140 and the savings on reusable material is R1725,determine the number of devices produced.

Answer 1

The total production cost of one device consists of labor, computing and overhead costs. Let's denote them respectively as C₁, L, Com, Ov.

$$C_1=L+Com+Ov=R1035+R4140+R1725=R6900$$

And it is one device cost, and the production cost of all devices C_T:

$$C_T=C_1*N$$

So we can find N - number of produced devices:

$$N=C_T/C_1=R293250/R6900=42.5≈42$$

It is rounded to the less digit because we can not produce and sell the fracttional part of the device.

Answer:42