Question

Q.6.
The cost structure of an article the selling of which is Rs. 430 is as under:

Direct Material 50% of total cost
Direct Labour
30% of total cost
Overheads
Balance of total cost
Due to anticipated increase in existing material price by 20% and in existing labour rate by 10%
the existing profit-would come down by 30% if the selling price remain unchanged.
Prepare a comparative statement showing cost, profit and sale price under present condition and
with the increase expected for future. Assume that the same percentage of profit on cost as at
present will have to be earned.​

Answer 1

Answer:

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