Question

Company A is a sole-trader - one highly skilled craftsperson and a well-equipped workshop. They will require one specialist tool to complete the project, costing £4.00. The craftsperson will charge £40 per hour and each lamp will take 4 hours to make. Company B is a medium-sized business with 20 semi-skilled workers. The cost of the set up for the manufacture of the lamp is £100 and the workers need to be paid £7.50 each per hour. Five laborers can make a lamp in 2 hours. Question-->Retailer needs 50 lamps. how much will it cost to make them from company A and Company B
Question--->State which company would offer better value for money and explain how the reduced cost per unit could be achieved.
(a)Explain two factors, other than cost, that might affect a retailer’s decision

Answer 1

Answer:

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