A manufacturing company has an installed capacity of 1,20,000 units per annum. The cost structure of the

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A manufacturing company has an installed capacity of 1,20,000 units per annum. The cost structure of the product manufactured is an under: 

The capacity utilisation for the next year is estimated at 60% for 2 months, 75% for 6 months and 80% for the balance part of the year. If the company is planning to have a profit of 25% on the selling price, calculate the estimated selling price for each unit of production. Assume there is no opening or closing stock.

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Cost Accounting

ISBN: 9780070221628

4th Edition

Authors: Jawahar Lal, Seema Srivastava

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