Q. 1. The Government of India has instituted the dual pricing system in the textile industry in the country. You are the head of the costing division of Modern Textile Co. Ltd. Your company produces a standard type of cloth, 50% of which is procured by Government at a price of Rs 4 per meter. You are required by the Managing Director of your company to suggest a suitable price for the cloth to be sold in the open market. Production during 2021-2022 is expected to be 20, 00,000 meters of cloth. Relevant information is given below: Expenditure Expenditure Cotton consumed Amount (Rs.) 10,00,000 Amount(Rs.) 4,00,000 Expenditure on sales Depot Direct Labour in 10,00,000 1,00,000 Deprecation of Machines ( office) factory Carriage Inward 50,000 Misc. office expenditure 1,00,000 Indirect labour in 4,00,000 2,00,000 Purchase of computer for office factory Salary of works 2,50,000 5,00,000 Misc. purchase of furniture and machines for office Director and other staff in factory Water, Power, local 5,00,000 Dividends paid 12,00,000 Taxes (factory) Dyeing, Bleaching, etc. 10,00,000 Director's fees 2,00,000 Deprecation (Factory) 2,00,000 Advertising and Publicity 10,00,000 Excise and other Taxes 30,00,000 Commission paid on sales 10,00,000 on Production Misc. Expenses 1,00,000 Commission paid to foreign 1,00,000 (Factory) Buyers Office Salaries 10,00,000 Packaging and forwarding 2,00,000 (on Sales) 1,00,000 Salary of Managing Director Following additional information is made available: 1. The company expects a fair return of 20% on its paid-up capital which is Rs. 1, 00, 00,000. 2. Marketing Expenses outstanding are Rs. 1,00,000. Required: Suggest the open market price after preparing a cost analysis sheet. Q. 1. The Government of India has instituted the dual pricing system in the textile industry in the country. You are the head of the costing division of Modern Textile Co. Ltd. Your company produces a standard type of cloth, 50% of which is procured by Government at a price of Rs 4 per meter. You are required by the Managing Director of your company to suggest a suitable price for the cloth to be sold in the open market. Production during 2021-2022 is expected to be 20, 00,000 meters of cloth. Relevant information is given below: Expenditure Expenditure Cotton consumed Amount (Rs.) 10,00,000 Amount(Rs.) 4,00,000 Expenditure on sales Depot Direct Labour in 10,00,000 1,00,000 Deprecation of Machines ( office) factory Carriage Inward 50,000 Misc. office expenditure 1,00,000 Indirect labour in 4,00,000 2,00,000 Purchase of computer for office factory Salary of works 2,50,000 5,00,000 Misc. purchase of furniture and machines for office Director and other staff in factory Water, Power, local 5,00,000 Dividends paid 12,00,000 Taxes (factory) Dyeing, Bleaching, etc. 10,00,000 Director's fees 2,00,000 Deprecation (Factory) 2,00,000 Advertising and Publicity 10,00,000 Excise and other Taxes 30,00,000 Commission paid on sales 10,00,000 on Production Misc. Expenses 1,00,000 Commission paid to foreign 1,00,000 (Factory) Buyers Office Salaries 10,00,000 Packaging and forwarding 2,00,000 (on Sales) 1,00,000 Salary of Managing Director Following additional information is made available: 1. The company expects a fair return of 20% on its paid-up capital which is Rs. 1, 00, 00,000. 2. Marketing Expenses outstanding are Rs. 1,00,000. Required: Suggest the open market price after preparing a cost analysis sheet.