A foundry is melting pig iron for producing castings. Coke and limestone are used to melt the metal. 150 kg of coke and 50kg of limestone are required to melt one ton of pig iron. The loss in melting is 5% and the normal rejection amounts to 10% of casting made. Cost of pig iron is Rs 895 per ton. Cost of coke is rs 650 per ton and cost of limestone is rs 100 per ton. Rejections fetch a return of 60 paise per kg. Find the

A) net total cost

B) Output

C) saleable Output Raw material cost per kg of saleable casting.

Answer rating: 100% (QA)

Answer A One ton is 1000kgs Pig iron 1000 kg Add Cost of coke 150kg Re065 6501000 150kgRe065 Add ... View the full answer