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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:

  1. Calculate the total cost for each product.
  2. Determine the cost per unit if the production volumes are 8,000 units for Product A and 10,000 units for Product B.
  3. Compute the selling price per unit if the desired profit margin is 15% on cost.
  4. Assess the impact on total cost if factory overheads increase by 10%.

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