Q_2:The following data are available for 2019:

Production 50, 000 units

Materials consumed Rs-75, 000,

Direct wages-50, 000

Variable production overhead-100,000

Variable selling overhead-200, 000

Fixed expenses-75, 000

Selling price per unit-Rs12

It is expected that in 2020:

(a)Production will be 100, 000 units

(b)Prices of materials will go up by 33.33%

(c)Variable selling overhead and fixed expenses will rise by 25% and Rs25, 000

respectively.

What would be the cost per unit and selling price in 2020, if it is desired to maintain the same rate of profit on sales as in 2019?