A school wants to purchase four identical hand-crafted gifts from Sunbeam CO., to be given to Chief guest during a function. EACH Gift can be crafted by SINGLE LABOURER. Sunbeam will start the work ON THE NEXT DAY OF ORDER. The following info estimated for the first unit of gift.
Particulars Rs/unit
Direct variable cost(exlcuding labour 3500
Direct LABOUR(30 HRS @ 60 per hour) 1800
Other Info:
>80% learning cruve ratio applicable to Direct labour
>Each day consist of 8 WORKING HOURS per LABOURER. No overtime allowed.
>Desired mark-up is 20% of all variable cost
Compute the minimum amount of Sunbeam can QUOTE for the 4 UNITS of the gift, if school will take delivery of the gift on
i. 5th day o f the order (i.e. 4 days from the commencement of the work)
ii. 7th day of the order
iii. 11th day of the order
CAclubindia
