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Above orders for items

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Manufacturer M sells Item A for £3,900 per 500 units.

(a) Calculate:

(i) the cost of an order for 40,000 units

(ii) the price of one unit of Item A in dollars at an exchange rate of £1 = $1.40.

Manufacturer M also makes Item B, at a rate of 1,750 units per day.

(b) Calculate how many whole days will be required to complete an order for 20,000 units of item B.

The above orders for Items A and B are invoiced together, and the invoice total is £450,000.

(c) Calculate:

(i) the average cost per unit (Items A and B together)

(ii) the cost per unit of Item B.

Reference no: EM131085773

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