The budgeted output of a factory specializing in the production of a single product at an optimum capacity of 6,400 units per annum amounts to Rs 1,76,048 as detailed here:

Rs Rs Fixed costs — 20,668 Power 1,440 Repairs and so on 1,700 Miscellaneous and so on 540 Direct materials 49,280 Direct labour 1,02,400 1,55,360 Total 1,76,048 Due to possible impact on sales turnover by market trends, the company decides to have a flexible budget with a production of 3,200 and 4,800 units (the actual quantity proposed to be produced being left to a later date before the commencement of budget period). Prepare a flexible budget for production levels at 50%
and 75%. Assuming the sales per unit is maintained at Rs 40 at present, indicate the effect on net profit.
Administration, selling and distribution expenses continue at Rs 3,600.