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JKM Food Products Ltd. has a maximum production capacity of 300,000 units per month. Below is the cost data for different activity levels: Particulars of

JKM Food Products Ltd. has a maximum production capacity of 300,000 units per month. Below is the cost data for different activity levels:

Particulars of Costs

150,000 units

200,000 units

250,000 units

Direct Material

₹30,00,000

₹40,00,000

₹50,00,000

Direct Labour

₹25,00,000

₹33,00,000

₹41,00,000

Total Factory Overheads

₹15,00,000

₹20,00,000

₹25,00,000

You are required to calculate:

  1. The total cost at an activity level of 225,000 units.
  2. The cost per unit at this activity level.
  3. The selling price per unit if a profit margin of 25% on cost is desired.
  4. The variable cost per unit if the fixed overheads are ₹10,00,000 per month.

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