Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started