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Problem 13.38 (Different Methods of Pricing). An organisation manufactures a produck, particulars of which are detailed below: Annual production 20,000 units Material cost Rs. 60,000
Problem 13.38 (Different Methods of Pricing). An organisation manufactures a produck, particulars of which are detailed below: Annual production 20,000 units Material cost Rs. 60,000 Other variable costs 1,20,000 Fixed cost 40,000 Total cost 2,20,000 Apportioned investment 2,00,000 Determine the unit selling price under each of the following strategies. Assume that the organisation's tax rate is 52%. (i) 20% return on investment; () 30% mark-up based on total cost; iii) 20% profit on net sales price; (iv)15% profit on list sales when trade discount is 35%; (v) 40% mark-up based on incremental cost; (vi) 50% mark-up based on value added by manufacturer
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