Mehta Ltd introduced 5000 units in a process at a cost of Rs10000.The wages and overheads incurred are Rs 10000 and Rs8000 respectively. It is expected that 10% of the output is likely to be defective. Actual output of the goods is 4400units. The rectification of defective units costs Rs 4 per unit You are required to - Calculate the cost per unit

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 7P
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Mehta Ltd introduced 5000 units in a process at a cost of Rs10000.The wages and
overheads incurred are Rs 10000 and Rs8000 respectively. It is expected that 10% of the
output is likely to be defective. Actual output of the goods is 4400units.
The rectification of defective units costs Rs 4 per unit
You are required to -

Calculate the cost per unit

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