Question

QUESTION
A cylinder liner is manufactured by first casting a hollow cylinder and then machining it on the inner and outer surfaces, as well as the two ends of the hollow cylinder. You have been given the responsibility to manufactu
with following final dimensions:
N
ID: 90 mm
OD: 100 mm
L: 200 mm
The casting required to make this liner should have 5 mm machining stock on ID and OD and 15 mm machining stock on length. The foundry cost for making the casting is Rs. 45 per kg of casting weight Machining cost is
50 per liner and the value of scrap recovered during machining is Rs. 18 per kg. One-time machine setup cost of Rs. 10,000 is incurred every time a batch of this liner is produced. What is the unit cost of producing a batch
500 liners, and b) 1500 liners.​

Answer 1

Answer:

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