Photo AI

Using the data in Extract F, calculate the monthly labour cost per car - Edexcel - A-Level Business - Question 2 - 2018 - Paper 2

Question 2

Using the data in Extract F, calculate the monthly labour cost per car. You are advised to show your working.

Worked Solution & Example Answer:Using the data in Extract F, calculate the monthly labour cost per car - Edexcel - A-Level Business - Question 2 - 2018 - Paper 2

Step 1

96%

114 rated

Answer

To find the monthly labour productivity, we divide the monthly output by the number of production workers.

$ext{Monthly Labour Productivity} = \frac{\text{Monthly Output}}{\text{Number of Workers}} = \frac{20000}{400} = 50 \text{ cars per worker}$

Step 2

99%

104 rated

Answer

The total monthly labour cost can be found by multiplying the number of production workers by the labour cost per worker.

$\text{Total Monthly Labour Cost} = \text{Number of Workers} \times \text{Labour Cost per Worker} = 400 \times 2000 = 800000 \text{ pounds}$

Step 3

96%

101 rated

Answer

Finally, we calculate the labour cost per car by dividing the total monthly labour cost by the monthly output.

$\text{Labour Cost per Car} = \frac{\text{Total Monthly Labour Cost}}{\text{Monthly Output}} = \frac{800000}{20000} = 40 \text{ pounds}$

97% of Students

Report Improved Results

98% of Students

Recommend to friends

100,000+

Students Supported

1 Million+

Questions answered

;