# A firm has purchased a plant to manufacture a new

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10. A firm has purchased a plant to manufacture a new product, the cost data for which is given below: Estimated annual sales 24,000 units Estimated costs: Material Rs 4.00 per unit Direct labour Rs 0.60 per unit Overheads Rs 24,000 per year Administrative expenses Rs 28,800 per year Selling expenses 15% of sales Calculate the selling price if profit per unit is Rs 1.02 [Ans. Rs 9.20] 11. Prepare a cost sheet from the following data to find out profit and cost per unit: Raw materials consumed Rs 1,60,000 Direct wages Rs 80,000 Factory overheads 20% of direct wages Office overheads 10% of factory cost Selling overheads 12,000 Unit produced 4,000 Units sold 3,600 Selling price Rs 100 per unit [Ans. Prime cost Rs 2,40,000, factory cost Rs 2,56,000, cost of production Rs 2,81,600, cost of sales Rs 2,65,440, profit Rs 94,560]

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