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CA Inter doubt

I need answer for 2 nd question please help

Image attached to the doubt: I need answer for 2 nd question please help

Asked by Vignesh19 Jul 2025705 views

2 answers

  1. Rohit · 19 Jul 2025

    Bhai same question mera bhi pending hai ....

  2. Kalyani · 19 Jul 2025

    To solve this problem, we need to follow the steps outlined in the question and calculate the revised selling price and the percentage of profit to sales. *Step 1: Calculate the Current Cost Structure* Given that the selling price is Rs. 45,000, we can calculate the current cost structure as follows: - Direct Materials: 50% of Rs. 45,000 = 0.5 * 45000 = Rs. 22,500 - Direct Labour: 20% of Rs. 45,000 = 0.2 * 45000 = Rs. 9,000 - Overheads: 30% of Rs. 45,000 = 0.3 * 45000 = Rs. 13,500 *Step 2: Calculate the Current Profit* The total cost = Direct Materials + Direct Labour + Overheads = Rs. 22,500 + Rs. 9,000 + Rs. 13,500 = Rs. 45,000 Since the selling price equals the total cost, the current profit is Rs. 0. However, we are given that there is a profit, so let's proceed with calculating the profit per article at present. Profit per article = Selling Price - Total Cost First, let's find the total cost per article. The total cost is equal to the selling price, so we need to find the profit percentage. Let's assume the cost is 100, then the selling price is 125 (since the profit is 25% of the cost). So, the cost = (100/125) * 45000 = Rs. 36,000 Profit = Selling Price - Cost = Rs. 45,000 - Rs. 36,000 = Rs. 9,000 *Step 3: Calculate the Revised Costs* - Increase in the cost of materials by 15%: New cost of materials = Rs. 22,500 + (15% of Rs. 22,500) = Rs. 22,500 + (0.15 * 22500) = Rs. 22,500 + Rs. 3,375 = Rs. 25,875 - Increase in the cost of labour by 25%: New cost of labour = Rs. 9,000 + (25% of Rs. 9,000) = Rs. 9,000 + (0.25 * 9000) = Rs. 9,000 + Rs. 2,250 = Rs. 11,250 - Overheads remain the same: Rs. 13,500 *Step 4: Calculate the Revised Total Cost and Profit* Revised Total Cost = New cost of materials + New cost of labour + Overheads = Rs. 25,875 + Rs. 11,250 + Rs. 13,500 = Rs. 50,625 Revised Profit = Revised Selling Price - Revised Total Cost We are required to maintain the same percentage of profit per article at present, which is 25% of the cost. Let's denote the revised cost as C. Then, the revised selling price = C + 0.25C = 1.25C We know that the revised total cost is Rs. 50,625, so C = Rs. 50,625. Revised Selling Price = 1.25 * Rs. 50,625 = Rs. 63,281.25 *Step 5: Calculate the Percentage of Profit to Sales* Revised Profit = Revised Selling Price - Revised Total Cost = Rs. 63,281.25 - Rs. 50,625 = Rs. 12,656.25 Percentage of Profit to Sales = (Revised Profit / Revised Selling Price) * 100 = (12656.25 / 63281.25) * 100 = 20% Therefore, the revised selling price should be Rs. 63,281.25, and the percentage of profit to sales as before is *20%*.

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