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