Cases in Cost Management 3rd Edition by John Shank

تمرين 2

The following questions deal with some calculations that may help you think about question 1.
Suppose Montclair could use 75% scrap in the raw material mix, and could use green* scrap paper (reduce dye cost from $500 to $250), and could achieve 75% yield at the paper machine. How would the $2,276 standard cost (at the machine) change So what
*The standard cost presumes using white scrap paper in the raw material mix. Green scrap paper is readily available from scrap brokers at very low prices because there is high supply and low demand.