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Find the selling price per unit

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Question - A company produces Televisions, some of the defects of a period are as follows. Suggest as per Pareto Analysis.

1. Exterior speakers not fitted properly.

No of items = 10

2. Speakers sound effect not audible clearly

No of items = 110

3. Picture screen differences seen

No of items = 25

4. Video output line not working properly

No of items = 60

5. Stains on the screen.

No of items = 5

6. Rough hedges on the glass.

No of items = 70

7. Configuration mismatches of picture tube.

No of items = 20

Product P has a sales of 80,000 units per annum and other details as follows:

Material = 4,80,000

Labor = 1,60,000

Variable Overheads = 3,20,000

Fixed Overhead = 5,00,000

Fixed portion of the capital employed is 12 Lakhs. Its varying portion will be 50% of sales turnover. Find the selling price per unit to earn 12% net on capital employed (Net of Tax @40%)?

Reference no: EM132874424

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