A factory engaged in manufacturing plastic buckets is working @ 40% capacity and produces 10,000 buckets per month.

The present cost break-up for one bucket is as follows:

Rs

Material

10

Labour

3

Overhead [60% fixed]

5

The Selling Price is Rs. 20 per bucket. If it is decided to work the factory at 50% capacity, the Selling Price falls by 3%. At 90% capacity, the Selling Price falls by 5%, accompanied by a similar fall in the price of material.

You are required to prepare a statement showing the profit at 50% and 90% capacities and also to calculate the break-even points at each of these production levels.