how would this quesFill in the blank with the correct answer.
You are a production manager for a pill manufacturer. You must get the materials for a production run. The order calls for 10,000 pills. The materials to go inside the 10,000 pills cost a total of $500.00. A box of 5000 empty capsules costs $100.00. The pills are to be packaged in bottles of 100 capsules each. The bottles cost $0.50 each. The cost of manufacturing 1000 pills is $10.00. What should you report to your boss is the cost of each bottle of 100 pills?
tion be figured,
Materials,$500.00x1=$500.00 (as stated)
Capsules,$100.00x2=$200.00(5,000x2=10,000)
Bottles,$0.50x100=$50.00 (10,000/100 each)
Manufacturing,$10.00x10=$100.00 (100x10)
Total the costs and divide by 100 to get production cost per bottle.
thank you Ken
To calculate the cost of each bottle of 100 pills, you need to consider the costs of materials, capsules, bottles, and manufacturing.
1. Materials: The materials for the 10,000 pills cost $500.00.
2. Capsules: A box of 5,000 empty capsules costs $100.00. Since you need 10,000 pills, you will need two boxes of capsules, so the cost is $100.00 x 2 = $200.00.
3. Bottles: Each bottle contains 100 capsules, and you need a total of 10,000 pills. So, you will need 10,000 pills / 100 capsules per bottle = 100 bottles. The cost of each bottle is $0.50. Therefore, the total cost of bottles is $0.50 x 100 = $50.00.
4. Manufacturing: It costs $10.00 to manufacture 1,000 pills. Since you need 10,000 pills, the cost of manufacturing is $10.00 x 10 = $100.00.
Now, you can calculate the total cost by adding up the costs from each category: $500.00 (materials) + $200.00 (capsules) + $50.00 (bottles) + $100.00 (manufacturing) = $850.00.
To determine the cost of each bottle of 100 pills, divide the total cost by the number of bottles: $850.00 / 100 = $8.50.
Therefore, you should report to your boss that the cost of each bottle of 100 pills is $8.50.