The following is the cost and other useful data for a chemical industry:

Fixed-capital investment

= Rs. 800 Lakhs

Annual production output

= 10 million kg of product

our

Raw materials cost = Rs. 4.8/kg of product

Operating labor = 20 men per shift at Rs. 240 per employee-hour

100 psig steam = 50 kg/kg of product

Price of steam = Rs. 96/1000 kg

Purchased electrical power = 0.4 kWh/kg of product

Price of electrical power = Rs. 5/kWh

Process water = 10 gal/kg of product

Price of process water = Rs. 1.2/1000 gal

Plant operates three hundred 24-h days per year. Corrosive liquids are involved. Shipments are in bulk carload lots. A large amount of direct

supervision is required. There are no patent, royalty, interest, or rent charges. Plant-overhead costs amount to 50 percent of the cost for operating labor, Supervision, and maintenance.

Estimate the manufacturing cost of product per year.