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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:

  1. Calculate the total cost for each car model.
  2. Determine the cost per unit if the production volumes are 1,000 units for Sedan and 1,200 units for SUV.
  3. Compute the selling price per unit if the company aims for a 22% profit margin on cost.
  4. Assess the impact on total cost if direct material costs increase by 8%.

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