Boysen Industries manufactures outdoor paints used for the facade of high rise buildings. The company plans to introduce a new paint variant that is able to withstand harsh weather conditions. The new paint is made by combining Protein D with a solution (Salcomb) which will be heated to boiling point and thereafter, the colouring agent (Texta) is added. The resulting paint will be packaged in 10 litre containers. The initial mix, which is 11 litres in volume, consists of 15 kilograms of Protein D and 8 litres of Salcomb. A reduction in volume by 1 litre happens during the boiling process. The resulting solution is cooled slightly before 3 kilograms of of Texta are added. Texta evaporates so it does not affect the final liquid volume. The purchase prices of the raw materials used in the manufacture of the new paint variant are as follows: Protein D $2.90 per kilogram Salcomb $3.50 per litre Texta $5.80 per kilogram Determine the standard material cost of a 10 litre container of the new paint for Boysen Industrics. (7 marks)
Boysen Industries manufactures outdoor paints used for the facade of high rise buildings. The company plans to introduce a new paint variant that is able to withstand harsh weather conditions. The new paint is made by combining Protein D with a solution (Salcomb) which will be heated to boiling point and thereafter, the colouring agent (Texta) is added. The resulting paint will be packaged in 10 litre containers. The initial mix, which is 11 litres in volume, consists of 15 kilograms of Protein D and 8 litres of Salcomb. A reduction in volume by 1 litre happens during the boiling process. The resulting solution is cooled slightly before 3 kilograms of of Texta are added. Texta evaporates so it does not affect the final liquid volume. The purchase prices of the raw materials used in the manufacture of the new paint variant are as follows: Protein D $2.90 per kilogram Salcomb $3.50 per litre Texta $5.80 per kilogram Determine the standard material cost of a 10 litre container of the new paint for Boysen Industrics. (7 marks)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Boysen Industries manufactures outdoor paints used for the facade of high rise buildings.
The company plans to introduce a new paint variant that is able to withstand harsh weather
conditions. The new paint is made by combining Protein D with a solution (Salcomb) which
will be heated to boiling point and thereafter, the colouring agent (Texta) is added. The
resulting paint will be packaged in 10 litre containers. The initial mix, which is 11 litres
in volume, consists of 15 kilograms of Protein D and 8 litres of Salcomb. A reduction in
volume by 1 litre happens during the boiling process. The resulting solution is cooled
slightly before 3 kilograms of of Texta are added. Texta evaporates so it does not affect the
final liquid volume.
The purchase prices of the raw materials used in the manufacture of the new paint variant
are as follows:
$2.90 per kilogram
$3.50 per litre
Protein D
Salcomb
Texta
$5.80 per kilogram
Determine the standard material cost of a 10 litre container of the new paint for Boysen
Industrics. (7 marks)
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