1 14 80% Question 6(b): Pricing - ExporVincremental Order - Profit Statement - Acceptance Decision 8 Marks JC Company produces electronic products and its Factory is working in Special Economic Zone (SEZ). The expected capacity utilization is 60% and Turnover for the year 2016-2017 is # 660 Lakhs. If the Company works at 100% capacity, the Sales Cost Relationship will be as follows: Factory Cost: 65% of Sales Value Prime Cost: 75% of Factory Cost Selling and Administrative Cost: 20% of Sales Value and being 80% Variable The Factory Overheads will vary according to operating capacity in the following manner: Operating Capacity 60% 100% 120% Factory Overheads (in Lakhs) 155.25 164.00 178.75 214.50 The Government of India gives 10% Subsidy on the export order amount and it is expected that currency fluctuation trends will be positive by 8% in next financial year. The Company receives an offer from abroad for a value of