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6. M Ltd. manufactures a special product purely carried out by manual labour. It has a capacity of 20000 units. It estimates the following cost
6. M Ltd. manufactures a special product purely carried out by manual labour. It has a capacity of 20000 units. It estimates the following cost structure:- Direct Material Direct Labour (1 hour/unit) Variable overhead Fixed overheads at maximum capacity 30/unit 20/unit 10 /unit 150000. It is estimated that at the current level of efficiency, each unit requires one hour for the first 5000 units. Subsequently it is possible to achieve 80% learning rate. The market can absorb the first 5000 units at Rs. 100 per unit. What should be the minimum selling price acceptable for an order of 15000 units for a prospective client? [May 08] 9 hours ner day The estimated
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