Product P has a sales of 80,000 units per annum and other details as follows: Material=4,80,000 Labor=1,60,000 Variable Overheads=3,20,000 Fixed Overhead=5,00,000 Fixed portion of the capital employed is 12 Lakhs. Its varing portion will be 50% of sales turnover. Find the selling price per unit to earn 12% net on capital employed(Net of Tax @40%)

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 11E
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Product P has a sales of 80,000 units per annum and other details as follows:

Material=4,80,000

Labor=1,60,000

Variable Overheads=3,20,000

Fixed Overhead=5,00,000

Fixed portion of the capital employed is 12 Lakhs. Its varing portion will be 50% of sales turnover.

Find the selling price per unit to earn 12% net on capital employed(Net of Tax @40%)

 

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