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Milad Company produces two types of fans- A & B. The details of each of them are given below: COST FAN A FAN B Raw
Milad Company produces two types of fans- A & B. The details of each of them are given below:
COST FAN A FAN B Raw Material 3 kgs 3.5 kgs Labour hours 5 hours 4 hours Machine hours 1.5 hours 2 hours Cost of Raw Material per kg $5 $6.5 Wage per hour $6 $5 Machine cost per hour $20 $25 Units produced in a month 2200 3500 Rent of the factory $ 6000 per month (both fans share half of the factory floor) Monthly Electricity charges $ 5000 per month Find out the per unit and total cost for the two products. Also state which product is more costly to produce for Milad CompanyStep by Step Solution
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