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Costra ltd is into the manufacturing of toys for children. Following are the extracted figures from the cost records of Costra ttd for the year
Costra ltd is into the manufacturing of toys for children. Following are the extracted figures from the cost records of Costra ttd for the year 20X1. During 201 the company produced 1000 identical toys. Profit Margin was set as 25% of the selling price. Costra ttd has decided to produce 1,500 units for 20X2. Some cost are expected to increase in the vear 20.2. Following are the details of the estimations: - Cost of the raw materials are estimated to go up by 20% - Labor cost is expected to increase by 10% - Overhead - 50% of the charges are fixed and the rest 50% are directly proportional to the production. 7he selling expenses are expected to go down by 20%. - Costra ttd is willing to earn the same profit margin as the last year ie 25% of the selling price. Prepare a cost sheet for the year 202 and work out the estimated selling price per unit of the product
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