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Oh god help me please

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    As it stands this is known:

    Profit last year
    Property expenses

    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.
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    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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Updated: May 26, 2012
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