Calculation of Selling Price:

To calculate the selling price, we need to consider the various costs associated with the production and selling of the product. These costs include materials, direct labor, factory overhead, administrative expenses, and selling expenses.

1. Materials:
The cost of materials per unit is ₹5.

2. Direct Labor:
The cost of direct labor per unit is ₹0.75.

3. Factory Overhead:
The factory overhead is given as ₹30,000 per annum. Since we are estimating annual sales to be 30,000 units, we can calculate the factory overhead per unit as follows:
Factory Overhead per Unit = Factory Overhead / Estimated Annual Sales
= ₹30,000 / 30,000 units
= ₹1 per unit

4. Administrative Expenses:
The administrative expenses are given as ₹37,500 per annum. Again, we can calculate the administrative expenses per unit as follows:
Administrative Expenses per Unit = Administrative Expenses / Estimated Annual Sales
= ₹37,500 / 30,000 units
= ₹1.25 per unit

5. Selling Expenses:
The selling expenses are mentioned as 10% of the sale price. To calculate the selling expenses per unit, we need to determine the sale price. Let's denote the selling price as 'x'.
Selling Expenses per Unit = Selling Expenses / Estimated Annual Sales
= 10% of x / 30,000 units
= 0.10x / 30,000 units

6. Profit per Unit:
The profit per unit is given as a rate of 1.24976. Let's denote it as 'P'.
Profit per Unit = Selling Price - (Materials + Direct Labor + Factory Overhead + Administrative Expenses + Selling Expenses per Unit)
P = x - (₹5 + ₹0.75 + ₹1 + ₹1.25 + 0.10x / 30,000)

Calculating Selling Price:
To calculate the selling price, we need to solve the equation for 'x' using the profit per unit rate:
P = x - (₹5 + ₹0.75 + ₹1 + ₹1.25 + 0.10x / 30,000)
1.24976 = x - (₹5 + ₹0.75 + ₹1 + ₹1.25 + 0.10x / 30,000)
1.24976 = x - (₹8 + 0.10x / 30,000)

To simplify the equation, let's multiply both sides by 30,000 to get rid of the fraction:
37,492.8 = 30,000x - (₹8 * 30,000 + 0.10x)
37,492.8 = 30,000x - ₹240,000 - 0.10x
37,492.8 = 29,900x - ₹240,000

Now, let's isolate 'x' by moving the constants to the right side:
29,900x = 37,492.8 + ₹240,000
29,900x = ₹277,492.8

Finally, divide both sides by 29,900 to solve for '