A company is at present working at 90% of its capacity and producing 8,000 units per annum. It operates a flexible-budgetary control system. The following figures are obtained from its budget:
| 90% Capacity Rs. Don't use plagiarized sources. Get Your Custom Essay on what would you recommend for an export price of these 1 000 units taking into accoun 609594 Get an essay WRITTEN FOR YOU, Plagiarism free, and by an EXPERT! Just from $10/Page | 100% Capacity Rs. | |
| 1. Sales | 12,00,000 | 15,00,000 |
| 2. Fixed expenses | 2,50,000 | 2,50,000 |
| 3. Semi-fixed expenses | 75,000 | 1,00,000 |
| 4. Variable expenses | 1,25,000 | 1,50,000 |
| 5. Units made | 9,000 | 10,000 |
Labour and the material cost per unit are constant under present conditions. profit margin is 10%.
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