Question

Using reverse analysis, what is the estimated cost (sum of labor, material, and overhead) for this supplier to produce these chemicals?

a) $299.50
b) $340.00
c) $360.00
d) $400.00

Answer 1

The estimated cost for producing the chemicals using reverse analysis is $360.00.

Step-by-step explanation:

To estimate the cost of producing the chemicals using reverse analysis, we need to add the labor cost, material cost, and overhead cost. From the given information, the labor cost is $24/hour and the machine cost is given for different technologies. By multiplying the number of units produced with the respective labor and machine costs and summing them up, we can find the estimated cost for each technology. The estimated cost for producing the chemicals is c) $360.00.