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Fresh Beverages Ltd. has the following cost data for its two drink products, Soda and Juice: Particulars Soda () Juice () Direct Material 90,000 1,10,000
Fresh Beverages Ltd. has the following cost data for its two drink products, Soda and Juice:
Particulars | Soda (₹) | Juice (₹) |
Direct Material | 90,000 | 1,10,000 |
Direct Labour | 1,20,000 | 1,50,000 |
Factory Overheads | 1,40,000 | 1,80,000 |
Selling and Distribution | 60,000 | 80,000 |
Requirements:
- Calculate the total cost for each drink product.
- Determine the cost per unit if the production volumes are 7,000 units for Soda and 9,000 units for Juice.
- Compute the selling price per unit if the desired profit margin is 15% on cost.
- Assess the impact on total cost if direct material costs increase by 8%.
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