Dream Enterprise wants to know how much it costs to make one (1) unit of their product and how much it priced to sell it. They manufactured 300 units in a single day. They produced 6,000 units in a month. The material cost each day is P9,000, with a fixed cost of P20,000 and a variable cost of P15,000 every month. They also want a 55% markup based on cost. What should their product's total cost and selling price per unit be?
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The selling price per unit will be 79.
Explanation: cost sheet is prepared to calculate various cost and to ascertain profit and sales.
The following will be the cost sheet of dream enterprise:- (for a month)
Direct material(9000*30) = 270000
fixed cost = 20000
variable cost = 15000
total cost = 305000
profit( 305000*55%) = 167750
sales value = 472750
selling price per unit = 472750/6000
= ₹78.79 or 79
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