(Model: Calculation of selling price)

The Genetry company produces two products X and Y.

Estimated costs are presented for a year in which 12,500 units of each product are expected to be sold.

An annual profi t of Rs. 1,50,000 for the whole company is considered satisfactory. The company uses the same gross margin percentage to arrive at the price for both the products. You are required to calculate selling prices for both products X and Y.

Transcribed Image Text:

Total Product Product "X" "Y" Rs. Rs. Rs. Direct 4,50,000 3,00,000 1,50,000 production cost Overhead 1,80,000 1,20,000 60,000 cost Selling & Administrative 1,20,000 80,000 40,000 Cost