• # question_answer A factory producing 150 electric bulbs a day, involves direct material cost of Rs. 250, direct labour cost of Rs. 200 and factory overheads of Rs. 225. Assuming a profit of 10% of the selling price, and selling on-cost 30% of the factory cost, what is the selling price of one electric bulb? A) Rs. 6.50            B) Rs. 12.50C) Rs. 18.50                      D) Rs. 21.00

Production of electric bulbs per day =150 Direct material cost = Rs. 250/ Direct labour cost = Rs. 200/ Factory overhead = Rs. 225/ Profit = 10% of selling price Selling on-cost = 30% of factory cost. Selling price of one electric bulb, Factory cost = Material cost + Labour cost + overheds $=250+200=225$ = Rs. 675/- Selling on cost $=0.3\times 675$ = Rs. 202.5/ Total Cost$=675+202.5$ = Rs. 877.5/ Let x = selling price per electric bulb. $x=\frac{1}{150}\times 877.5+0.1x$ $0.9x=5.85$ $x=Rs.\,6.50$