- Sk Ltd Provides You The Following Figures For The Year 2017 18 Direct Material 3 20 000 Direct Wages 8 00 000 Product 1 (412.74 KiB) Viewed 22 times
SK Ltd. provides you the following figures for the year 2017-18. Direct Material 3,20,000 Direct wages *8,00,000 Production overheads (25% variable) *4,80,000 Administration overheads (75% fixed) 1,60,000 Selling and Distribution overheads (2/3 fixed) 32,40,000 Sales @ 125 per unit *25,00,000 For the year 2018-19, it is estimated that: (a) Output and sales quantity will increase by 20% by incurring additional advertisement expenses of *45,200 (b) Material prices will go up 10% (c) Wage rate will go up by 5% alongwith, increase in overall direct labour efficiency by 12% (d) Variable overheads will increase by 5% (e) Fixed production overheads will increase by 33 1/3%. unacaderny Required: (a) Calculate the cost of sales for the year 2017-18 and 2018-19 (b) Find out the selling price for the year 2018-19 if the existing percentage of profit is to be increased by 25%