In a particular Job, Materials
and Wages were Rs.600 and
Rs.400 respectively where as
Factory expenses were 50%
of wages and office expense
were 25% of Factory cost.
What will be the selling
price of Job, if 25% profit on
cost is expected?
Rs.1,250
Rs.1,875
O Rs.1,500
O Rs.2,000
Answers
Answer:
The selling price is Rs. 1875
Step-by-step explanation:
Given:
Material = Rs. 600
Wages = Rs. 400
Factory expenses = 50% of Wages = (50/100) * 400 = Rs. 200
We know that factory cost = Material + Wages + Factory expenses
= 600 + 400 + 200
= Rs. 1200
Office expenses = 25% of Factory cost = (25/100) * 1200
= Rs. 300
Therefore, cost price = Factory cost + Office expenses
= 1200 + 300
= Rs. 1500
Given that Profit = 25%
We know that profit = 25% of Cost Price = (25/100)*1500
= Rs. 375
We know that Selling price = Cost Price + Profit
= 1500 + 375
= Rs. 1875
Therefore, the selling price is Rs. 1875