Compute MHR from the following data. Cost of the machine Rs 1,00,000 Installation charges Rs 10,000 Estimated

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Compute MHR from the following data.

Cost of the machine Rs 1,00,000 Installation charges Rs 10,000 Estimated scrap value after the expiry of its life (15 years) Rs 5,000 Rent and rates for the shop per month Rs 200 General lighting for the shop per month Rs 300 Insurance premium for the machine per annum Rs 960 Repairs and maintenance per annum Rs 1,000 Power consumption 10 units per hour Rate of power per 100 units Rs 20 Estimated working hours per annum, which includes setting up time of 200 hours 2,200 Shop supervisor’s salary per month Rs 600 The machine occupies one-fourth of the total area of the shop. The shop supervisor is expected to spend one-fifth of his time for supervising the machine.

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