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HIK Textiles Ltd. has provided the following cost data for different levels of production: Particulars of Costs 20,000 units 40,000 units 60,000 units Direct Material

HIK Textiles Ltd. has provided the following cost data for different levels of production:

Particulars of Costs

20,000 units

40,000 units

60,000 units

Direct Material

₹10,00,000

₹20,00,000

₹30,00,000

Direct Labour

₹15,00,000

₹30,00,000

₹45,00,000

Total Factory Overheads

₹20,00,000

₹40,00,000

₹60,00,000

You are required to calculate:

  1. The total cost at an activity level of 50,000 units.
  2. The cost per unit at this activity level.
  3. The selling price per unit if a profit margin of 20% on cost is desired.
  4. The breakeven point in units if the fixed overheads are ₹10,00,000 per month.

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