If government regulation sets the maximum price for a natural monopoly equal to its marginal cost, then the natural monopolist w
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Answer:
Allocated administrative cost for mixing is $81000
And allocated administrative cost for for bottling is $81000
Explanation:
We have given total number of employs for mixing = 350
And total number of employs for bottling = 350
Administrative cost = $162000
So total number of employs = 350+350 = 700
So allocation base for mixing
So allocated amount for mixing = 0.5×$162000 = $81000
Allocation base for bottling =
So allocated amount for bottling = 0.5×$162000 = $81000