Determine the unit cost of the labelling process, Business Management

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The Company have now added one more process to their product's line. The new process is to label their products to reflect their compliance to new international standards. The new line operates at 60 units per hour. The operating cost of the new line is £6500/week, including capital recovery calculated over its nominal 10 years asset life in addition to £22 per hour the cost of materials used in the production of labels. Knowing that the company only operates 8 hours per working day, determine the unit cost of the labelling process based on:

a.    5 working days per week

b.    7 working days per week


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