Accounting 9706 · AS & A Level · Costs and cost behaviour

Costs and cost behaviour — practice question

There are eight employees in one team. Every employee earns $16$ per hour, and the team also divides a group bonus among themselves according to their output of product. If production goes above $500$ units, the team receives a bonus of $8$ for each extra unit produced. This bonus is split equally and is paid weekly. In the previous week, each team member worked for $40$ hours, and the team altogether produced $560$ units. What is the pay of each member of the team?

  • A$700$
  • B$760$
  • C$1120$
  • D$1200$

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