Following are the particulars for the production of 2,000 sewing machines of Modem Engineering…

Following are the particulars for the production of 2,000 sewing machines of Modem Engineering Co. Ltd. for the year 1992.

Following are the particulars for the production of 2,000 sewing machines of Modem Engineering Co....

The company plans to manufacture 3,000 sewing machines during 1993. You are required· to submit a statement showing the price at which machines would be sold, so as to show a profit of 10% on selling price. The following additional information is supplied to you:

(a) Price of materials is expected to rise by 20%,

(b) Wages rates are expected to show an increase of 5%,

(c) Manufacturing expenses will rise in proportion to the combined cost of material and wages,

(d) Selling expenses per unit will remain the same,

(e) Other expenses will remain unaffected by the rise in output.

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