1. A company is into production of Capital Equipment for Printing industry. The cost break up of one such machine is as follows:

A. Material Consumption

S. No. Particulars Consumption per machine Purchase Price (Rs)

1 Metal 9 kg 200 per kg

2 Components 10 components 75 per component

3 Paint 1 ltr 50 per ltr

The quantity of material consumption given above is the net quantity consumed. There was a wastage of 10% on the gross quantity consumed. The scrap generated from this process has no realisable value.

B. Labour Cost is estimated to be 20%

C. Manufacturing overheads are estimated to be 15% of Selling Price

In case the company has to maintain a Gross Profit Margin of 18%, what would be the selling price of this machine.