Discuss whether or not apportioning the factory rent on a per unit basis is the most appropriate method for apportioning that cost.
Discuss whether or not setting selling prices by use of a fixed mark-up is the most appropriate way to set them.
Calculate the yearly total cost of quality inspections if production of Z takes place.
Calculate the annual increase in machine set-ups that would result if production of Z takes place.
Calculate the yearly rise in factory rent that would occur if production of Z takes place.
Calculate the selling price for one unit of each product if production of Z takes place.
Advise the directors whether or not they should reduce the number of quality inspections of product Z. Support your answer.