The following data are available for 2006: Production Materials Consumed Direct Wages Variable Production overhead Variable...
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The following data are available for 2006: Production Materials Consumed Direct Wages Variable Production overhead Variable Selling overhead Fixed Expenses Selling Price per unit It is expected that in 2007: (a) Production will be 1,00,000 units. (b) Prices of materials will go up by 33%. 50,000 units Rs. 75,000 50,000 1,00,000 2,00,000 75,000 12 (c) Variable selling overhead and fixed expenses will rise by 25% and Rs. 25,000, respectively. What would be the cost per unit and selling price in 2007, if it is desired to maintain the same rate of profit on sales as in 2006? The following data are available for 2006: Production Materials Consumed Direct Wages Variable Production overhead Variable Selling overhead Fixed Expenses Selling Price per unit It is expected that in 2007: (a) Production will be 1,00,000 units. (b) Prices of materials will go up by 33%. 50,000 units Rs. 75,000 50,000 1,00,000 2,00,000 75,000 12 (c) Variable selling overhead and fixed expenses will rise by 25% and Rs. 25,000, respectively. What would be the cost per unit and selling price in 2007, if it is desired to maintain the same rate of profit on sales as in 2006?
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Managerial Economics and Business Strategy
ISBN: 978-0073523224
8th edition
Authors: Michael Baye, Jeff Prince
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