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Clever Clothing Ltd. provides the following cost details for its two clothing lines, Casual and Formal: Particulars Casual () Formal () Direct Material 1,20,000 1,50,000
Clever Clothing Ltd. provides the following cost details for its two clothing lines, Casual and Formal:
Particulars | Casual (₹) | Formal (₹) |
Direct Material | 1,20,000 | 1,50,000 |
Direct Labour | 1,40,000 | 1,70,000 |
Factory Overheads | 1,60,000 | 2,00,000 |
Selling and Distribution | 70,000 | 80,000 |
Requirements:
- Calculate the total cost for each clothing line.
- Determine the cost per unit if the production quantities are 8,000 units for Casual and 10,000 units for Formal.
- Calculate the selling price per unit for both lines if the desired profit margin is 20% on cost.
- Evaluate the new total cost if factory overheads increase by 15%.
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