The works cost of a certain article is Rs. 500 and the selling price is Rs. 1,000. The following selling and distribution

(direct) expenses were incurred:

The estimated fi xed selling and distribution expenses for the year were Rs. 50,000, and the estimated value of sales for the year were Rs. 2,00,000.
You are required to set out the fi nal cost of the article using the method of percentage on sales to recoup fi xed selling and distribution expenses.

Transcribed Image Text:

Rs. Freight and carriage 50 Insurance 15 Commission 45 Packing cases 15