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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:

  1. The total cost at an activity level of 110,000 units.
  2. The cost per unit at this activity level.
  3. The selling price per unit if a profit margin of 25% on cost is desired.
  4. The variable cost per unit if the fixed overheads are ₹10,00,000 per month.

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