The following information relates to the production activities of Goodwish Ltd for 3 months ending on 31st December, 2006.
|
Particulars |
Amount in Rupees |
|
Fixed Expenses: |
|
|
Management Salaries |
2,10, 000 |
|
Rent and Taxes |
1,40, 000 |
|
Depreciation of Machinery |
1,75, 000 |
|
Sundry Office Expenses |
2,22, 000 |
|
Total Fixed Expenses |
7,47, 000 |
|
Semi & Variable Expenses at 50% capacity |
|
|
Plant Maintenance |
62, 500 |
|
Labor |
2,47, 000 |
|
Salesmen&s salaries |
72, 500 |
|
Sundry Expenses |
65, 000 |
|
Total Semi-Variable Expenses |
4,47, 000 |
|
Variable Expenses |
|
|
Materials |
6,00, 000 |
|
Labour |
6,40, 000 |
|
Salesmen&s commission |
95, 000 |
|
Total Variable Expenses |
13,35, 000 |
It is further noted that semi-variable expenses remain constant between 40% and 70% capacity, increase by 10% of the above figures between 70% and 85% capacity and increase by 15% of the above figures between 85% and 100% capacity. Fixed expenses remain constant whatever the level of activity may be. Sales at 60% capacity are Rs.25,50, 000, at 80% capacity Rs.34, 00, 000 and at 100% capacity Rs.42, 50, 000. Assuming that all items of produced are sold, prepare a Flexible Budget at 60%, 80% and 100% productive capacity.