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An Electronics Company has the following cost structure (Rs.) for an electronic product Direct Material 50 Direct Labour 75 Variable Overheads 30 Fixed Overheads 45

An Electronics Company has the following cost structure (Rs.) for an electronic product

Direct Material

50

Direct Labour

75

Variable Overheads

30

Fixed Overheads

45

Total Unit Cost

200

Fixed Selling and Administrative Costs

6,00,000

Additional Information:

(i) Budgeted Production and Sale for the next year is 20,000 units

(ii) The management feels that a minimum return of 20% is required on equity investments of Rs. 20,00,000. What price should it charge for one unit of its output?

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