-Optional Questions (Do any one out of Question 3 & 4)- 3. The cost structure (%)...
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-Optional Questions (Do any one out of Question 3 & 4)- 3. The cost structure (%) of an article with a selling price of Rs 45,000 is as follows: Direct material Direct labour Overheads 50 20 30 An increase of 15% in the cost of material and of 25% in the cost of labour is anticipated. These increased costs in relation to the present selling price would cause a 25 per cent decrease in the amount of present profit per article. You are required (a) to prepare a statement of profit per article at present and (b) the revised selling price to produce the same percentage of profit to sales as before. (6+6) -Optional Questions (Do any one out of Question 3 & 4)- 3. The cost structure (%) of an article with a selling price of Rs 45,000 is as follows: Direct material Direct labour Overheads 50 20 30 An increase of 15% in the cost of material and of 25% in the cost of labour is anticipated. These increased costs in relation to the present selling price would cause a 25 per cent decrease in the amount of present profit per article. You are required (a) to prepare a statement of profit per article at present and (b) the revised selling price to produce the same percentage of profit to sales as before. (6+6)
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