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Megha Ltd. has furnished the following cost structure of product M: Direct material 50% Direct labor 20% Overhead costs 30% The sale price of the

Megha Ltd. has furnished the following cost structure of product M:

Direct material

50%

Direct labor

20%

Overhead costs

30%

The sale price of the product is Rs.45,000. The company has estimated an increase of 15% in the cost of materials and an increase of 25% in the cost of the labour. These increased costs in relation to the present selling price would cause a 25% decrease in the amount of present profit per unit. Compute the revised selling price to produce the same percentage of profit to sales as before.

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