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Fresh Foods Ltd. has provided the following cost data for its two product lines, Juices and Snacks: Particulars Juices () Snacks () Direct Material 1,00,000
Fresh Foods Ltd. has provided the following cost data for its two product lines, Juices and Snacks:
Particulars | Juices (₹) | Snacks (₹) |
Direct Material | 1,00,000 | 1,20,000 |
Direct Labour | 1,20,000 | 1,40,000 |
Factory Overheads | 1,50,000 | 1,80,000 |
Selling and Distribution | 70,000 | 80,000 |
Requirements:
- Calculate the total cost for each product line.
- Determine the cost per unit if the production quantities are 10,000 units for Juices and 12,000 units for Snacks.
- Calculate the selling price per unit for both products if the desired profit margin is 18% on cost.
- Assess the impact on total cost if direct labour costs increase by 7%.
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