A company produces mineral water. Based on the projected annual sales of 40,000 bottles of mineral water, cost studies have produced the following estimates:      Total annual costs (in rupees)                Variable cost percentage Material                                              193,600                                  100 Labour                                                  90,000                                   70 Overhead                                             80,000                                    64 Administration                                      30,000                                    30 The production will be sold through dealers who would receive a commission of 8% of sale price. Management to realize a profit of 10 percent of sales.   Required: Calculate Selling Price

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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A company produces mineral water. Based on the projected annual sales of 40,000 bottles of mineral water, cost studies have produced the following estimates:

     Total annual costs

(in rupees)                Variable cost percentage

Material                                              193,600                                  100

Labour                                                  90,000                                   70

Overhead                                             80,000                                    64

Administration                                      30,000                                    30

The production will be sold through dealers who would receive a commission of 8% of sale price.

Management to realize a profit of 10 percent of sales.

 

Required:

Calculate Selling Price

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