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Q10 The following figures are related to the costing of Air purifier manufacturing company: Stock of raw material ( 1-4-2019) Rs 11,000 Stock of raw material (31-3-2020) Rs 7,000 Production wages Rs 1,68,000 Material Purchased Rs 1,23,000 Work Overheads Rs 1,50,000 Administration Overheads Rs 1,68,000 Selling charges Rs 1,12,000 Distribution charges Rs 70,000 Net profit Rs 1,10,000 Finished stock (1-4-2019) NIL Finished stock (31-3- 2020) Rs 58,000 In 2020, the company has received a work order for which the estimated expenses are- Direct Material: Rs 1,20,000 and Wages: Rs 1,17,000. Assuming that in 2020 work overhead will go up by 20%, distribution charges will go up by 10% and selling and administration charges will go up by 12.5% respectively. At what price should the air purifier be quoted so as to earn a profit of 25% on cost