A component can be manufactured in either of two machines. Operating details of the two machines are given below:
|
|
1st machine
|
2nd machine
|
|
No. of pieces
produced/hour
|
15
|
60
|
|
Cost of tooling
|
Rs.200
|
Rs.420
|
|
Setting of time
|
70 min
|
230 min
|
|
Machining
labour/hour
|
Rs.4
|
Rs.4
|
|
Setting
labour/hour
|
Rs.15
|
Rs.20
|
|
Over head
charges
|
3 times
total
labour cost
|
10 times total
labour cost
|
Determine the break-even quantity for production of the component and also compare economy of the two processes after the break-even point.