Ca final Ama(old and new)

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