1. A factory currently operates at 75% capacity has the following particulars: Sales ($) 15,00,000 Costs: 14,00,000 Direct Materials 500,000 Direct Labor 200,000 Variable overheads 100,000 Fixed overheads 600,000 Profit 200,000 An export order has been received that would utilize half the capacity of the factory. The order has either to be taken in full and executed at 10% below the normal domestic prices, or rejected totally The alternatives available to the management are given below: a) Reject order and Continue with the domestic sales only, as at present; b) Accept order, split capacity equally between overseas and domestic sales and turn away excess domestic demand; Prepare comparative statements of profitability and suggest the best alternative. 1. A factory currently operates at 75% capacity has the following particulars: Sales ($) 15,00,000 Costs: 14,00,000 Direct Materials 500,000 Direct Labor 200,000 Variable overheads 100,000 Fixed overheads 600,000 Profit 200,000 An export order has been received that would utilize half the capacity of the factory. The order has either to be taken in full and executed at 10% below the normal domestic prices, or rejected totally The alternatives available to the management are given below: a) Reject order and Continue with the domestic sales only, as at present; b) Accept order, split capacity equally between overseas and domestic sales and turn away excess domestic demand; Prepare comparative statements of profitability and suggest the best alternative