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The following data relates to a company's operating budget for its next operating year: Sales price per unit () Sales volume (units) 19 15,000
The following data relates to a company's operating budget for its next operating year: Sales price per unit () Sales volume (units) 19 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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