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Luxury Motors Ltd. has the following cost details for its car models, Sedan and SUV: Particulars Sedan () SUV () Direct Material 2,00,000 3,00,000 Direct
Luxury Motors Ltd. has the following cost details for its car models, Sedan and SUV:
Particulars | Sedan (₹) | SUV (₹) |
Direct Material | 2,00,000 | 3,00,000 |
Direct Labour | 2,50,000 | 3,50,000 |
Factory Overheads | 3,00,000 | 4,00,000 |
Selling and Distribution | 1,20,000 | 1,50,000 |
Requirements:
- Calculate the total cost for each car model.
- Determine the cost per unit if the production volumes are 1,000 units for Sedan and 1,200 units for SUV.
- Compute the selling price per unit if the company aims for a 22% profit margin on cost.
- Assess the impact on total cost if direct material costs increase by 8%.
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