*It requires 3 production runs to produce 5000 units of X, 5 production runs to produce 7500 Units of Y and 7 production runs to produce 10000 units of Z. *The material requirements are as under: 10,000 kgs @ Rs 10/kg for X 12,500 kgs @ Rs 8/kg for Y and 15,000 kgs @ Rs 6/ kg for Z *It takes a total of 15,000 hours each to produce X and Y and 8000 hours to produce Z respectively. Labour is paid Rs 20/hour. *The company also incurs Rs 760,000 on overhead costs. These are allocated amongst the products basis the labou cost. *The desired profit margin is 25% on selling price for all divisions. Based on an in-depth study, the Consultant recommended that XYZ should now adopt a "Revised Costing System" given the multiple products and increased size of the business. After a thorough evaluation of the costs and identification of the cost drivers, the Consultant proposed the following method for splitting the overhead costs: *Set Up Costs of Rs 450,000 (driver: Production Runs) *Material Handling costs of Rs 310,000 (driver: Quantity of Material Consumed) The management is evaluating the Consultant's recommendation. What are the costs and selling prices per unit of each product if the existing costing system is followed? What are the costs and selling prices per unit of each product if the revised costing system is followed? The products will go off-patent in few years and the intensity of competition is likely to become even higher. What will be the consequences for XYZ Pharma if the company continues to use the existing costing system, whereas the competitors use the revised costing system