2.125 is the target production time
Labour cost will be increased to 6 (3+3) per unit of product. We need to find the number of hours. That will be x. VOH also varies with time, so that will be 2*x. With this if we solve the sum, the target time is 2.125
Hourly rate is 3. ![]()
You'll get step marks dont worry
5600 ,
Realisable value of chemical can be included 3500.
Labour cost since no loss of contribution and existing employees are used for a new contract only variable cost to be included 800
Other material cost 800
Out of pocket expense 500
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