Usha Engineering Works Ltd manufactured and sold 1,000 sewing machines in 2010. Following are the particulrs obtained from the records of the company. $ Cost of materials 80,000 Wages paid 1,20,000 Manufacturing expenses 50,000 Salaries of managerial staff 60,000 Rent, rates and insurance 10,000 Selling expenses 30,000 General expenses 20,000 Sales 4,00,000 The company plans to manufacture 1,200 sewing machines in 2011. You are required to submit a statement showing the price at which machines would be sold so as to show a profit of 10 per cent on the selling price. The following additional information is supplied to you: (a) The price of materials will rise by 20 per cent over the previous year's level. (b) Wages rates will rise by 5 per cent. 5 (C) Manufacturing expenses per unit will rise in proportion to the combined cost of materials and wages. (d) Selling expenses per unit will remain unchanged. (e) Other expenses will remain unaffected by the rise in output. a