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