estion 18 Sondela Ltd is a manufacturing company that is planning to use the cost-plus pricing method to set the selling price. The company has provided the following data: Variable cost per unit: Direct material R30 Direct labour R45 Manufacturing overheads R75 Sales commission R15 Selling expenses R23 Total fixed costs Depreciation - factory R27 000 Depreciation - administration R45 000 Rent - factory R31 500 Rent - head office R22 500 Selling and administration cost R60 000 Required: (b) Calculate the selling price if the company adds mark-up of 45% on variable costs.
Question 18
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Sondela Ltd is a manufacturing company that is planning to use the cost-plus pricing method to set the selling price. The company has provided the following data: Variable cost per unit: Direct material R30 Direct labour R45 Manufacturing overheads R75 Sales commission R15 Selling expenses R23 Total fixed costs Depreciation - administration R45 000 Rent - factory R31 500 Rent - head office R22 500 Selling and administration cost R60 000 Required: (b) Calculate the selling price if the company adds mark-up of 45% on variable costs. |
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