An air-conditioning company produces and sells

‘Triple x’ model of air-conditioner for Rs. 20,000 during the year 2008. The direct material, the direct labour and overhead costs are 60%, 20% and 20%

respectively of the cost of sales.

In the year 2009, the direct material cost has increased by 15% and direct labour cost by 17%. Due to these increase in costs, there would be a 50% decrease in the amount of profi t if the same selling price is to be maintained.

Compute the new selling price to enable the company to maintain the same percentage of profi t as that earned during the year 2008.