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Finance : Prime Cost

A machine operator stamps labels on sheets of metal that are later made into cans. Each sheet can make 118 cans. The cost per sheet of metal is $10.60. The operator is paid $9.40 per hour and labels 120 sheets per hour. What is the prime cost of labeling 1 can?
a.$.0905 b.$.01 c.$.0105 d.$.011 e.not given

Solution Preview

Solution. Since the operator is paid $9.40 per hour and labels 120 sheets per hour, also ...

Solution Summary

Prime cost is calculated.

$2.19