Exercise

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answer.docx

Question 1:

Break down:

Cost of ingredients (flour + egg + sugar etc.) = x1 + x2 + x3

Depreciation for equipment (only related to this) = d1

Utility costs and other overheard costs ( includes salary to employee for the hours devoted to this) = u1

Profit (usually around 15%) = p1

Total cost (for 3 dozen cookies) = x1+x2+x3+d1+u1+p1 = Total charges

The actual numbers may vary but taking typical numbers

X1+X2+X3= $10

D1= $3

O1= $3

P1= $24* 0.15= $3.6

Total = $19.6

Question 2:

The cost of ingredients purchase, preparation and delivery are $141, 10, and 26. Total Giving project

cost of $177.

DescriptionUnits

Units Required

(A)

Per unit Cost

(B)

Total Cost

= A*B

Make 3 dozen cookies

Purchase Ingredients

VanillaPkts120.00$ 20.00$

ButterBars310.00$ 30.00$

EggsNos.61.00$ 6.00$

SugarKgs110.00$ 10.00$

FlourKgs210.00$ 20.00$

Baking SodaPkts15.00$ 5.00$

SaltPkts1 $ 5.00 5.00$

MilkLtrs35.00$ 15.00$

Chocolate ChipsPkts130.00$ 30.00$

Preparation

DoughHours18.00$ 8.00$

BakingHours28.00$ 16.00$

PackingHours0.54.00$ 2.00$

Delivery

CourierNos.110.00$ 10.00$

Total Cost177.00$