Seventeen

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hurting-croak is shown in Exhibit Note that in Exhibit 10.2 the information for an activity of 35 jumpers incorporates the changes arising from the capacity reduction whereas the information presented for the same activity level in Exhibit 10.1 is based on the assumption that capacity will be maintained at 50 jumpers. Therefore the direct labour cost in Exhibit 10.1 is £420 because it represents the labour required to meet demand at full capacity. If capacity is permanently reduced from 50 to 35 jumpers it is assumed that direct labour costs will be reduced by 30% from £420 to £294. amount 1