Calculate the MHR.
- Cost of the machine: Rs 24 lakh
- Custom duty, insurance, freight etc. Rs 11 lakhs.
- Installation expenses: Rs 3 lakh
- Cost of tools adequate for 2 years only: Rs 4 lakh
- Cost of machine room: Rs 3 lakh
- Cost of air conditioning for machine room: Rs 2 lakh
- Rate of interest on term loan to finance the above capital expenditure: 12%
- Salaries etc. for operators and supervisory staff: Rs 2 lakh per year
- Cost of electricity: Rs 11 per hour
- Consumption of stores: Rs 5,000 per month
- Other expenses: Rs 5 lakh per annum
- Assumed rate of depreciation at 10% per annum on fixed assets
- Total working hours in the machine room: 200 hours per month.
- Loading and unloading time: 10% of machine time
- You can make suitable assumptions, if necessary, for the purpose of your computation