ABC Ltd. has been operating at 70% capacity and the following particulars relate to the present level of activity:



Direct materials

Rs. 10, 500

Direct labour

Rs. 5,250

Variable overhead

200% of direct labour

Fixed overhead

Rs. 14,000


Rs. 47,250

ABC Ltd received an export order for 1,000 units of its product at Rs. 10 per unit. The export order will entail an extra expenditure in the form of special packing at Re 0.50 per unit. Is the export order worth?