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MNO Chemicals Ltd. has a maximum production capacity of 120,000 units per month. Below is the cost data for different activity levels: Particulars of Costs
MNO Chemicals Ltd. has a maximum production capacity of 120,000 units per month. Below is the cost data for different activity levels:
Particulars of Costs | 80,000 units | 100,000 units | 120,000 units |
Direct Material | ₹40,00,000 | ₹50,00,000 | ₹60,00,000 |
Direct Labour | ₹30,00,000 | ₹37,50,000 | ₹45,00,000 |
Total Factory Overheads | ₹20,00,000 | ₹25,00,000 | ₹30,00,000 |
You are required to calculate:
- The total cost at an activity level of 110,000 units.
- The cost per unit at this activity level.
- The selling price per unit if a profit margin of 25% on cost is desired.
- The variable cost per unit if the fixed overheads are ₹10,00,000 per month.
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