A company producing motors, decides to make a particular item in batches. The following information is available: Cost of setting-up machine and tools = Rs. 800 Annual rate of depreciation, interest rate etc. = 15% Consumption of parts in assembly shop = 100 / month Processing of each item takes 8 hours on the machine. Labour rate = Rs. 10 per day (Assume 8 hours in a day) Material cost = Rs. 3 per kg weight of each item = 15 kg Over head expenses on each part is allocated as 100% of the prime cost. Find out the economic batch size for machining and also the duration of machine run, assuming that the machine loading factor is about 80%.