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Concept of eann Previos Profit See aften additional tion 45. (Pricing) on manufactures lighters. He sells his product at 520 each, and makes profit of 5 on each lighter. ked 50 per cent of his machinery capacity at 50,000 lighters. The cost of each lighter is as material 6 2 s overhead 5 (50 per cent fixed) xpenses 2 (25 per cent variable) cipation for the next year is that the cost will be go up as under: ost 10% wages 20% al 5% will not he any change in selling price. There is an additional order for 20.000 lighters in the next year earn aft 45. (Pricing) nanufactures lighters. He sells his product at 20 each, and makes profit of 5 on each lighter. 250 per cent of his machinery capacity at 50,000 lighters. The cost of each lighter is as erial 6 2 fiyad There will not be any change in selling price. There is an additional order for 20.000 ligh What is the lowest rate he can quote so that he can earn the same profit as the curre 6 2 * 5 (50 per cent fixed) 2 (25 per cent variable) the cost will be go up as under: 10% 20% 5% price. There is an additional order for 20.000 lighters in the next year that he can earn the same profit as the current yearStep by Step Solution
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