This is a very nice paper and reads very well. Thank you for another job well done!
The case states: “The job setup and mold development costs are fairly constant from job to job”.The answer: costs may be fixed on a per job basis rather than variable on a per unit basis, i.e., each job has a single lump cost for each mold development and setup; the size of the cost would not vary with the number of units in a job. Therefore, the company may not be charging enough for small volume contracts and large volume contracts maybe charge too much. Please clarify.
QUESTION:The case states: “The job setup and mold development costs are fairly constant from job to job”.The answer: costs may be fixed on a per job basis rather than variable on a per…
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