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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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