As it stands this is known:
Profit last year
It is a care home company, number of units is not known, labour hours is not known.
Currently said company is working at 150% capacity which incurs excess costs in all of the above expenses except for Transport and depreciation. Salary is *1.33 for anything above 100% capacity.
A secondary company comes into the mix, said company is willing act as an extra 10% of capacity.
How do I calculate the cost of the additional work on the secondary company using marginal and absorption costing?
I'm at a total god damn loss and it is driving me insane.
Upload the full question (scan) or provide a reference to the text, question and I will happily take a look at it.
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