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XYZ Automobiles Ltd. has provided the following cost data for different levels of production: Particulars of Costs 500 units 1,000 units 1,500 units Direct Material

XYZ Automobiles Ltd. has provided the following cost data for different levels of production:

Particulars of Costs

500 units

1,000 units

1,500 units

Direct Material

₹7,50,000

₹15,00,000

₹22,50,000

Direct Labour

₹5,00,000

₹10,00,000

₹15,00,000

Total Factory Overheads

₹10,00,000

₹20,00,000

₹30,00,000

You are required to calculate:

  1. The total cost at an activity level of 1,200 units.
  2. The cost per unit at this activity level.
  3. The selling price per unit if a profit margin of 30% on cost is desired.
  4. The variable cost per unit if the fixed overheads are ₹5,00,000 per month.

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