Question
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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Principles Of Accounting
Authors: Robert Libby, Patricia Libby, Fred Phillips, Stacey Whitecotton
1st Edition
978-0077300456, 0077300459
