Using M = (R-V) / N.

where M = material cost ($/unit)

R = cost of raw materials per batch ($)

V = recycled value per batch ($)

N = number of good units in a batch, can be one or multiple units

1. An electric knife, used for uncapping honeycombs when harvesting honey from a beehive, has four components: steel blade - The steel blade is manufactured in-house. It is made from flat steel that comes in lengths of 12 feet. Each length is 14" X 2" X 12'. Top grade carbon steel costs $3.50/b, and has a density of 493 lb/ft?. 1 piece of flat steel can make 15 blades. 20% of the steel is lost in the manufacturing process. 1 out of 20 blades need to be scrapped because of poor quality. The scrap value of steel is $.30/lb. plastic handle the plastic handle is purchased from outside. All handles are good. A single handle costs $1.17. thermostat - Thermostats are purchased from outside as well. A thermostat costs $1.75. 98% of thermostats are good, but per an agreement with the thermostat vendor, the 2% that are bad are only reimbursed at 95% of the cost. electrical cord The electrical cord is manufactured in house. It is composed of the cord and plug. Plugs are all good, and cost $.25 each. Cords come in 100 foot roles. Each cord is 6 feet. A roll costs $55.00. Once the components are assembled into a useable electric knife, it has been found that 6% don't work for some reason. These are scrapped with no value. Calculate the material cost of the electric knife