The cost structure (%) of an article with a selling price of ₹45,000 is as follows:

An increase of 15 per cent in the cost of material and of 25 per cent in the cost of labour is anticipated.
These increased costs in relation to the present selling price would cause a 25 per cent decrease in the amount of present profit per article.
You are required

(a) to prepare a statement of profit per article at present and

(b) the revised selling price to produce the same percentage of profit to sales as before.

Transcribed Image Text:

Direct material Direct labour Overheads 50 20 30