Calculate the selling price if the company adds mark-up of 82% on variable manufacturi

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Question 12

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Sondela Ltd is a manufacturing company that is planning to use the cost-plus pricing method to set the selling price. The company has provided the following data:

Variable cost per unit:

 Direct material                                               R30                            

Direct labour                                                   R45

Manufacturing overheads                               R75

Sales commission                                           R15

Selling expenses                                             R23

Total fixed costs

Depreciation - factory                                     R27 000

Depreciation - administration                         R45 000

Rent - factory                                                  R31 500

Rent - head office                                           R22 500

Selling and administration cost                      R60 000

Required:

(c) Calculate the selling price if the company adds mark-up of 82% on variable manufacturing costs.

 

 

 

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