29 April 2013
A cast iron foundry is importing forged steel moulds for making its castings. The moulds are of four different sizes A,B,C and D and their CIF values are US $4,140; 4,160; 6,340, and 7,875 respectively. Customs duty may be assumed at 45% and clearing charges 5% of CIF value. The number of castings that can be made out of each mould it: A - 1,000 B - 2,000, C - 1,800 and D - 1,500. The weight of each casting out of A is 300 kg. B - 400 kg. C - 500 kg and D - 700 Kg. The casting suffer a normal rejection of 10%. You are required to calculate the average cost of mould per tonne of saleable casting. (For conversion assume US $ 1=` 8)