An electric computer manufacturer desired to quote for a contract for the supply of 5,000…

An electric computer manufacturer desired to quote for a contract for the supply of 5,000 computers on 31st July 1990. From the following data prepare statement showing the price to be quoted to give the same percentage of net profit on turnover as was realised during the six months to 30th June 1990:

An electric computer manufacturer desired to quote for a contract for the supply of 5,000 computers...

The number of computers manufactured during six months was 2,000, including those sold and those in stock at the close of the period. The computers to be quoted for are of uniform size and quality and are similar to those manufactured during the six month period. As from 1st July 1990, the cost of factory labour increased by 10% and that of material by 15%.

Hint: Profit on Sale – 10%. Indirect charges have been taken as a percentage of Direct Wages.

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