Flight has two products, the ‘Takeoff’ and the ‘Landing’. They go through two departments and incur the following costs:

Takeoff Landing Dept. A — Direct labour 10 hours £10 per hour 9 hours £7 per hour Direct materials 10 kilos £5 per kilo 7 kilos £12 per kilo Dept. B — Direct labour 8 hours £12 per hour 5 hours £8 per hour Direct materials 5 kilos £15 per kilo 6 kilos £10 per kilo Takeoff’s indirect overheads are absorbed at £7 per labour hour for Dept. A and £5 per hour Dept. B. , Landing’s indirect overheads are absorbed at £6 per labour hour for Dept. A and £4 per hour for Dept. B.

Selling price is to be 20% on cost.

Required:

The prices for which Flight should sell ‘Takeoff’ and ‘Landing’.

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