prepare a statement showing the price to be fixed that will result in a profit of 20 555960

A company received an enquiry for the supply of 10,000 steel folding chairs. The costs are estimated as follows:

Raw materials

1,00,000 kg at Re 1 per kg

Direct wages

10,000 hours at Rs 4 per hour

Variable overheads:

Factory

Rs 2.40 per labour hour

Selling and distribution

Rs 16,000

Fixed overheads:

Factory

Rs 6,000

Selling and distribution

Rs 14,000

Prepare a statement showing the price to be fixed that will result in a profit of 20% on the selling price.

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