Reference no: EM132956987
Question - The cost of sale of production 'A' is made up as follows:-
Material used in manufacturing RM 5,500
Material used in packing material RM 1,000
Material used in selling the product RM 150
Material used in the factory RM 175
Material used in the office RM 125
Labour required in production RM 1,000
Labour required for supervision in factory RM 200
Expenses direct factory RM 500
Expenses indirect factory RM 100
Expenses office RM 125
Depreciation of office building RM 75
Depreciation on factory plant RM 175
Selling expenses RM 350
Freight on material RM 500
Advertising RM 125
Assuming that all products manufactured and sold, what should be the selling price be fixed to obtain a profit of 20% on selling price.
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