dprendo
Dec 21, 2011, 04:35 AM
How is it possible to calculate the new selling price for year 2 in the following if the current profit/volume ratio is to be maintained?:
Yr1 Yr2
Material 40.00 43.00
Labour 10.00 11.00
Variable Overhead 4.00 4.20
Total Variable Cost 54.00 58.20
Selling Price 90.00 1,350,000
Contribution/unit 36.00 540,000
Sales during the current year are expected to be 1,350,000 and fixed overheads 140,000
Yr1 Yr2
Material 40.00 43.00
Labour 10.00 11.00
Variable Overhead 4.00 4.20
Total Variable Cost 54.00 58.20
Selling Price 90.00 1,350,000
Contribution/unit 36.00 540,000
Sales during the current year are expected to be 1,350,000 and fixed overheads 140,000