Cost and Management AccountingMCQQuestion 6155 of 249
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14. A company forecasts its labour costs and material cost to go up by 12% and 8% respectively per unit in the next financial year. If the ratio between material and labour is 5: 3, determine the increase in selling price as a percentage that the company shall keep to maintain its P/V of 12%, assuming variable overheads as nil.

Select Your Answer (Keyboard: A, B, C, D)
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Correct Answer

✅ Option A — 7.45%

All Options:

  • A7.45% ✓
  • B8.01%
  • C9.95%
  • D9.46%

Detailed Solution & Explanation

Correct Answer: Option **A** Explanation: As per the official suggested answer, option **A** is correct. Hence, **Option A** is the correct answer.

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