pls help me as soon as possible...............
a company produces 400000 components of machinery anually at 80% full capacity. regular selling price is rs33. budgeted annuual production cost and other expenses for the year as follows......
raw material cost per unit rs 4.25
direct labour cost per unit rs 5.75
variable factory overhead per unit rs 7.75
variable selling costs 5% of selling price
fix factory and admininstrative overheads rs 3950000
during the year company received a one time order to sell 25000 components for which no selling expenses will b incurred. wat shud b the minimum price qouted by the company if it wants to earn minimum of re 1 per component on this order?
asnwer at my mail gunjan_jain22 @ yahoo.co.in
CAclubindia
