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-   -   How to calculate the new selling price? (https://www.askmehelpdesk.com/showthread.php?t=621308)

  • Dec 21, 2011, 04:35 AM
    dprendo
    How to calculate the new selling price?
    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

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