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8 XLN Provides you the following figures for the yem 2020-21: Particulan R Direct Material Direct Vages Production Oreheads (2596 vmable) Administration Overheads (75% Fixed)
8 XLN Provides you the following figures for the yem 2020-21: Particulan R Direct Material Direct Vages Production Oreheads (2596 vmable) Administration Overheads (75% Fixed) Selling ad Distribution Overheads (2/3rd Fixed) Sales Rs 125 pe unit 3,20,000 8,00,000 4,80,000 1,00,000 2,40,000 25,00,000 For the yest 2021-22, it is estimated that: 1. Output and sales quatity will increase by 20% by incuming additional Advertisement Expenses of Biz, 45,200. 2. Material prices will go up 10%. 3. Wage Rate will go up by 5% along with increase in overall direct labour efficiency by 12%. 4. Variable Orerheads will increase by 5%. 5. Fixed Production Overheads will increase by 33 1/3 % Required: (a) Calculate the Cost of Sales for the year 2020-2022. 10) Find out the new selling price for the year 2021-2022. If the same amount of profit is to be earned as in 2020-2021. (i) If the same percentage of profit to sales is to be emed 2 in 2020-2021. (iii) If the existing percentage of proit to sales is to be increased by 25%. If Profit per unit Rs. 10 is to be eamed
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