The following cost data pertaining to the year 1964–1965 are collected from the books of ABC Power Company Limited
|
Rs |
Rs |
||
|
Total units generated |
15,00,000 |
Repairs and maintenance |
22,000 |
|
Operating labour |
18,000 |
Administration overheads |
9,000 |
|
Plant supervision |
5,250 |
Capital cost |
2,00,000 |
|
Lubricants and supplies |
12,000 |
Coal consumed per kWh for the year is 1.5 lb and the cost of cool delivered to the power station is Rs 33.06 per metric ton. Depreciation rate chargeable is 4% per annum and interest on capital is to be taken at 1% higher than Reserve bank rate of 6% per annum.