Meera Industries Ltd. is a single product organization having a manufacturing capacity of 6,000 units per week at 48 hours. The output data vis a vis different elements of cost for three consecutive weeks are given as follows:
|
units produces |
Area Material |
Direct Labour |
Total factory overheads (variable and fixed) |
|
2,400 |
4,800 |
6,000 |
37,200 |
|
2,800 |
5,600 |
7,000 |
38,400 |
|
3,600 |
7,200 |
9,000 |
40,800 |
As a cost accountant, you are asked by the company management to work out the selling price assuming an activity level of 4,000 units per week and a profit of 20% on selling price.