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ElectricalEconomics for Engineers
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A machine manufacturing company has annual production of 23000 units while working in one shift. The total fixed cost associated is Rs. 20,00,000 and total annual labor cost is Rs. 91,09,000. The company intends to increase annual production to 46000 units by introducing second shift. The additional fixed cost required for doing this is Rs. 4,00,000 and in the second shift labor charges has to be paid 25% more compared to one shift. The annual total cost per unit with two shifts will _________ compared to single shift.

A

decrease

B

increase

C

remains same

D

Insufficient data

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