plzz help urgent hai .......

help me ..................

X sels prdct at 20ech mks prft 5 on each.he wrkd 50% of machnry capcty at 50000 lightrs. D cost of ech ligtr as:
Direct mtral-rs 6
Wages-rs 2
Wrks ovrhd-5(50%fixd)
Sales exp-2(25%variable)
His anticipatn 4 d nxt yr is dat d cost wil go up as :
Fixd chrgs- 10%
Dirct labr- 20%
Matrial- 5%


Der wil nt b any change in seling price.der is an additnl ordr 4 20000 lghtrs in d nxt yr. wht is d lwst rate he can quote so dat he can ern d same prfit as in d curnt yr?

plzzz iska ans de do help me its urgent yaar...............
Replies (2)

total revised cost 16.10, total revised cost excluding fixed cost = 16.1-4.4=11.7

assuming additional order of 20000 will not affect local market & fixed cost is already recovered from 50000 lighters

profit out of 50000 lighters = 20-16.10*50000=195000

last year profit 250000

profit to be recovered out of 20000 lighters= 250000-195000= 55000

i.e.55000/20000 2.25 per lighter

sp to be quoted for 20000= 11.7+2.75= 14.45

thankzz bro..................

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