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The following data relates to a company's operating budget for its next operating year: Sales price per unit () 10 Sales volume (units) 15,000 Costs:

The following data relates to a company's operating budget for its next operating year:

Sales price per unit ()

10

Sales volume (units)

15,000

Costs:
Materials ()

52,500

Labour ()

33,800

Energy ()

101,000

Depreciation ()

105,000

The budget has been prepared using the following assumptions:

Materials costs are variable. Labour costs are semi-variable with a fixed element of 15,000. Depreciation is a fixed cost. An allowance for an energy price increase of 12% has already been included in the energy costs.

The company now wishes to revise the data to incorporate the following updated assumptions:

Selling prices will be reduced by 12% The sales volume will increase by 11% The rise in the energy prices should be revised to 3%

What will be the company's new selling price per unit for the year?

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