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What would be the cost per unit and selling price

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Reference no: EM132791346

The following data are available for 2019:

Materials consumed Rs-75, 000,

Direct wages-50, 000

Variable production overhead-100,000

Production 50, 000 units

Variable selling overhead-200, 000

Fixed expenses-75, 000

Selling price per unit-Rs12

It is expected that in 2020:

(a) Production will be 100, 000 units

(b) Prices of materials will go up by 33.33%

(c) Variable selling overhead and fixed expenses will rise by 25% and Rs25, 000 respectively.

Problem 1: What would be the cost per unit and selling price in 2020, if it is desired to maintain the same rate of profit on sales as in 2019?

Reference no: EM132791346

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