A Gel pen (advanced technique) manufacturer makes an average profit of Rs. 2.80 per piece on a selling price of Rs. 15.10 by producing and selling 50,000 pieces or 50% of the potential capacity. His cost of sales is: (per unit)

Direct material

Rs. 3.80

Direct wages

Rs. 1.40

Works overhead

Rs. 6.40 (50% fixed)

Sales overhead

Rs. 0.90 (30% variable)

During the current year, the manufacturer anticipates that his fixed charges will increase by 10% and rates of direct material and direct labour will increase by 7% and 9%, respectively. He has no option of increasing the selling price. Under this situation, he obtains an offer of an order equal to 20% of his capacity. This customer is a special customer.

What minimum price will you recommend for acceptance to ensure an overall profit of Rs. 1,81,000?