A manufacturing firm wants to choose from amongst three different machines for its plant. A hand operated machine with fixed and variable costs of Rs 2000 and Rs 4 per unit respectively. A semi-automatic machine with fixed and variable cost of Rs. 8000 and Rs. 2 per unit and an automatic machine costing Rs. 20000 and Rs. 1 per unit. If the firm wants to produce 10,000 units then which machine should be selected (also write your comments)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
Question 1:
A manufacturing firm wants to choose from amongst three different machines for its plant. A
hand operated machine with fixed and variable costs of Rs 2000 and Rs 4 per unit respectively.
A semi-automatic machine with fixed and variable cost of Rs. 8000 and Rs. 2 per unit and an
automatic machine costing Rs. 20000 and Rs. 1 per unit.
If the firm wants to produce 10,000 units then which machine should be selected
(also write your comments)
Transcribed Image Text:Question 1: A manufacturing firm wants to choose from amongst three different machines for its plant. A hand operated machine with fixed and variable costs of Rs 2000 and Rs 4 per unit respectively. A semi-automatic machine with fixed and variable cost of Rs. 8000 and Rs. 2 per unit and an automatic machine costing Rs. 20000 and Rs. 1 per unit. If the firm wants to produce 10,000 units then which machine should be selected (also write your comments)
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Relevant cost analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education