Ques. 4: ABG IId requires 750 printing machines per year for four years. The company is dan Printing Equipment Limited (IPL), among others to participate in the compending process to these machines. The machines are to be supplied regularly and the payudade the cost accountant of IEEL estimates the following cost per unit of the machine Particulars Cost per unit) Direct Material (2 Kg per unit) 2800 Labor & Overheads (manufacturing & assembling) 1125 Amortization of tools (3,600,000/2000) 3800 Allocated Corporate Overheads 075 Total Cost per machine 6600 @ Direct material to manufacture up to 500 machines is in stock. The material e not used for any other products of the firm. If not used for this purpose, the company would selaRs 900 per Kg. The material was purchased at Rs. 1250 per kg *40% of the labour & overheads are fixed in nature B, and large suen tred cesar ca es una in nature Also, there is enough ide capacty available to manufacture up to 450 mesecera **Depreciation amortization is charged on the total investment needed for designing the tools will be enough for manufacturing 2000 pnting machines (normal capacity Required: If IPEL gets 60% of the orders, what minimum pnce would the timquote the compe bidding Note that no further orders for such machines are likely and therefore the mos no value IPEL requires pre-tax ROI of 25% pa on its investments Ques. 4: ABG IId requires 750 printing machines per year for four years. The company is dan Printing Equipment Limited (IPL), among others to participate in the compending process to these machines. The machines are to be supplied regularly and the payudade the cost accountant of IEEL estimates the following cost per unit of the machine Particulars Cost per unit) Direct Material (2 Kg per unit) 2800 Labor & Overheads (manufacturing & assembling) 1125 Amortization of tools (3,600,000/2000) 3800 Allocated Corporate Overheads 075 Total Cost per machine 6600 @ Direct material to manufacture up to 500 machines is in stock. The material e not used for any other products of the firm. If not used for this purpose, the company would selaRs 900 per Kg. The material was purchased at Rs. 1250 per kg *40% of the labour & overheads are fixed in nature B, and large suen tred cesar ca es una in nature Also, there is enough ide capacty available to manufacture up to 450 mesecera **Depreciation amortization is charged on the total investment needed for designing the tools will be enough for manufacturing 2000 pnting machines (normal capacity Required: If IPEL gets 60% of the orders, what minimum pnce would the timquote the compe bidding Note that no further orders for such machines are likely and therefore the mos no value IPEL requires pre-tax ROI of 25% pa on its investments