A small factory can produce 60,000 units per annum at its optimum capacity. The estimated unit costs
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A small factory can produce 60,000 units per annum at its optimum capacity. The estimated unit costs of production are as under:
The factory produces only against orders (and not for stock). The production programme of the factory is as indicated below. The management desires to ensure a profit of ₹1,00,000 for the year. Work out the average selling price at which each unit should be quoted.
Ignore selling and administration overheads.
Transcribed Image Text:
Direct material Direct labour Indirect expenses Fixed (per annum) Variable (per unit) Semi-variable per annum up to 50 per cent capacity and an extra *10,000 for every 25 per cent increase in capacity or part thereof. 33 32 2 1,57,000 5 50,000
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Related Book For
Management Accounting Text Problems And Cases
ISBN: 9781259026683
6th Edition
Authors: M Y Khan, P K Jain
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