prepare a flexible budget to show the profits losses at 50 60 and 80 capacity utiliz 649314

A manufacturing company is currently working at 50% capacity and produces 10, 000 units at a cost of Rs.180 per unit as per the following details.

Factory Overheads: Rs.30 [40% fixed]

Administrative Overheads: Rs.20 [50% fixed]

Total Cost Per Unit: Rs.180

The selling price per unit at present is Rs.200. At 60% working, material cost per unit increases by 2% and selling price per unit falls by 2%. At 80% working, material cost per unit increases by 5% and selling price per unit falls by 5%.

Prepare a Flexible Budget to show the profits/losses at 50%, 60% and 80% capacity utilization.