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| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1369 |
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So, if labor cost is Rs. 20 per hour, we get the following costs distribution:
Order size Labor Time Cost Cost per Dozen
1 dozen 12 Rs. 4.00 Rs. 4.00
2 dozen 17 Rs. 5.66 Rs. 2.83
Thus, cost per dozen of labor is decreasing. This can be applied to orders of more than two dozens as well. Hence, Kristen's Cookie Company can give discounts to customers giving orders of more than one dozen because of the economies of scale as shown above...
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So, if labor cost is Rs. 20 per hour, we get the following costs distribution:
Order size Labor Time Cost Cost per Dozen
1 dozen 12 Rs. 4.00 Rs. 4.00
2 dozen 17 Rs. 5.66 Rs. 2.83
Thus, cost per dozen of labor is decreasing. This can be applied to orders of more than two dozens as well. Hence, Kristen's Cookie Company can give discounts to customers giving orders of more than one dozen because of the economies of scale as shown above...
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Determine The Primary Activities And Secondary Activities Of Your Organisation. Make A Conscious Decision On Whether Your Organization Should Compete By The Least Cost Strategy Or The Product Differentiation Strategy. Determine The Cost Drivers Of...
Kristen's Cookie Company
kristen cookie company
Labor Cost
Solution To Kristen'S Cookie Company
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Kristen’s Cookie Company
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