Question: Tech Innovators Ltd. has the following cost data for its two gadgets, Smartwatches and Fitness Bands: Particulars Smartwatches () Fitness Bands () Direct Material 1,50,000

Tech Innovators Ltd. has the following cost data for its two gadgets, Smartwatches and Fitness Bands:

Particulars

Smartwatches (₹)

Fitness Bands (₹)

Direct Material

1,50,000

1,20,000

Direct Labour

1,70,000

1,40,000

Factory Overheads

2,00,000

1,60,000

Selling and Distribution

80,000

60,000

Requirements:

  1. Calculate the total cost for each gadget.
  2. Determine the cost per unit if the production volumes are 6,000 units for Smartwatches and 7,000 units for Fitness Bands.
  3. Compute the selling price per unit if the desired profit margin is 18% on cost.
  4. Assess the impact on total cost if direct material costs increase by 10%.

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