Mr. Diraj has a small furniture factory. He specializes in the manufacture of small computer tables which he can make 15,000 a year. The cost per table worked out as follows for the year 2008–09, when he made and sold 10,000 tables.

Price is fi xed by adding a standard margin of 10% to the total cost arrived as above.
In 2009–2010, due to recession, there is a fall in the cost of materials, total cost being worked out as follows:

Mr. Diraj maintained his standard margin of 10% on the cost of sales. Sales were at the same level as in 2008–09.
You are asked to (1) Determine profi t or loss for the year 2009–2010 (2) Compute the price which should have been charged in 2009–2010 to yield the same profi t or loss as in 2008–2009.

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Rs. Materials 300 Labour 100 Overheads (fixed) recovered @ 50% 150 of material cost 550