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Illustration 5 The accounts Magnum electrical equipment's LCC. Show the following cost figures for 2010: 23832 Particulars Direct Materials consumed Direct labour Direct expenses Selling expenses Amount $ 10.200 8.500 4,000 2,500 3,832 Factory/Works overhead expenses = 25% of labour General overhead expenses = 10% of work cost What price should the company quote to manufacture a invertor so that it will yield a profit of 20% on the cost of sales? Solution