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…

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.