tha cost structure of an article, the selling price of which is Rs. 45,000 is as follows:-
direct material 50%
direct labour 20%
overheads 30%
an increase of 15% in the cost of material and of 25% in the cost of labour 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.
Required to prepare:-
1) statement of profit per article at present and,
2) the revised selling price to produce the same % of profit to sales as before
Ans:- 1) 15,000 2) 50,625
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