x Ltd Purchased 16000 units per annum of x spare part from another manufacturer @ Rs 3 per unit. The production manager put forward a purposal that production of this spare part may . company in order to have full control over the supply of the spare part he has submitted the following in formation along with the purposal. 1) Material and kabou would cost Rs.0.45 and Rs 0.375 per veit respectively ;) varialle overhed will be 100% of labour. iii) A foreman will be employed at Rs 1000 .4). Machine added needed would cost R 6oooo. It will have a production Rr Capacity of Rs 20,000 whits and its . Comoric life will be 6 years. 1) funds for the purchase of machine obtained at an intrest rate af 8%per annum you are required to advise the about the purposal.
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