Numerical - Calculate Minimum Price.

Q.  ABC Company manufactures and sells trucks at Rs 75,000 each made up of Direct Materials Rs 30,000, Direct Labour Rs 8,000 Variable Overheads is Rs 12,000, Fixed overheads is Rs 6,000, Variable selling expenses is Rs 3,000 Royalty is Rs 4,000 Profit is Rs 7,000. There is enough idle capacity. If the company decides to sell 4 trucks to ABC Company under the same management, what should be the minimum price to be charged?
- Published on 14 Sep 15

a. Rs 86,000
b. Rs 54,000
c. Rs 45,000
d. None of the above

ANSWER: Rs 54,000

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