The cost structure of an article, the selling price of which is Rs 45,000, is as under Direct Material cost 50 Direct Labor cost 20 Overheads 30 An increase of 15 in cost of material and of 25 in the cost of labor is anticipated These increased costs in relation to the present selling price would c...

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The cost structure of an article, the selling price of which is Rs.45,000, is as under: Direct

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The cost structure of an article, the selling price of which is Rs.45,000, is as under:

Direct Material cost	50%
Direct Labor cost	20%
Overheads	30%

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

You are requires to prepare statement of profit per article at present.

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Fundamentals of Engineering Economics

ISBN: 978-0132775427

3rd edition

Authors: Chan S. Park

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Posted Date: Feb 14, 2023 04:27 AM

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The cost structure of an article, the selling price of which is Rs.45,000, is as under: Direct

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Fundamentals of Engineering Economics

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