Calculate the Cost Per Unit for Setup for One Run

question 9

Multiple Choice

Calculate the cost per unit for setup for one run of 10 000 units if setup labour is $20 per hour and 10 hours are required to set up.

• A) $0.04 per unit.
• B) $0.06 per unit.
• C) $2.00 per unit.
• D) $0.02 per unit.

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Definitions:

Price

The financial value anticipated, demanded, or provided as compensation for something.

Wage Rate

The amount of compensation an employee receives per hour of work.

Diamond Cutters

Skilled professionals who cut and shape diamonds to enhance their value and beauty.

Supply

The total amount of a product or service available for purchase at any given price, determined by factors like production capacity and market demand.