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Digital Solutions Ltd. has the following cost data for its two software products, Product A and Product B: Particulars Product A () Product B ()
Digital Solutions Ltd. has the following cost data for its two software products, Product A and Product B:
Particulars | Product A (₹) | Product B (₹) |
Direct Material | 90,000 | 1,10,000 |
Direct Labour | 1,20,000 | 1,50,000 |
Factory Overheads | 1,40,000 | 1,70,000 |
Selling and Distribution | 50,000 | 60,000 |
Requirements:
- Calculate the total cost for each product.
- Determine the cost per unit if the production volumes are 8,000 units for Product A and 10,000 units for Product B.
- Compute the selling price per unit if the desired profit margin is 15% on cost.
- Assess the impact on total cost if factory overheads increase by 10%.
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