| Present Cost | Revised Cost |
|---|---|
| Steel Scrap Rate = 107/Kg | Quantity of Steel Scrap = 120kg |
| Quantity of Scrap = 240 kg | Cost of Scrap (120×107) = Rs12840 |
| Cost of Scrap used (240×107) = Rs25680 | Quantity of Swarf = 120 kg |
| Ferrosilicon used in one heat = 1.750 kg | Cost of Swarf (120×80) = Rs9600 |
| Rate per kg = Rs475/kg | Total Cost (12840+9600) = Rs22440 |
| Cost of Silicon used = Rs832 | |
| Carburizer Rate = Rs325/kg | |
| Cost = Rs325 | |
| Total cost = Rs26837 |
- Saving Cost (26840-22441) = Rs4400per Heat
- One-day production = 12heats
- Saving per day (4400×12) = Rs52800
- Saving per month (52800×22) = Rs1161600/-
Saving per Month = Rs1161600/-
