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

Costs and cost behaviour — practice question

A company’s production team consists of four employees. Each employee receives a basic wage of $20$ per hour. The team also divides a bonus among its members according to output. If production goes beyond $200$ units, the team earns a bonus of $8$ for each extra unit. This bonus is then shared equally. During last week, every team member worked $35$ hours, and the team produced $250$ units altogether. What pay did each member of the team receive last week?

  • A$800$
  • B$945$
  • C$1050$
  • D$1200$

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