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()1) A manufacturing company is operating at 75% of its full capacity. It is proposed to offer a price reduction of 5% to 10% depending

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()1) A manufacturing company is operating at 75% of its full capacity. It is proposed to offer a price reduction of 5% to 10% depending volume desired, Given below are the relevant data: Capacity 75% 85% 100% Output In units 75000 85000 100000 Selling price per unit In Rs 96 5% off 10% off Material cost per unit in Rs 40 10% less 15%% less Wares cost per unit In Ra 10 10 10 Following overheads are given at 100% capacity: Fixed overhead production In Rs 1400000 Fixed overhead selling and distribution in As 500000 Variable overhead production in Rs 1400000 Variable overhead selling and distribution in Rs 440000 Prepare a statement showing variable cost, fixed cost and total cost in terms of Rs at 75%%, 85% and 100% capacity and indicate which of the three levels is more profitable. (10 marks)

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