(1) Materials at 60% capacity at 80% capacity Less: 2-1/2% 12,00,000 16,00,000 40.000 15,60,000 (2) Variable fixed portions of various expenses 50% 60% Total Fixed 140 3 Labour 8,00,000 Mfg. overhead Selling overheads Increase for 10% (variable) 6,00,000 60,000 50,000 9.00,000 6,00,000 4.50.000 1,00,000 6,60,000 5,00.000 variable 3,00,000 3,60,000 3,00,000 3,00,000 2,00,000 11,00,000 (3) At 80% Capacity: Labour: Fixed Variable (21,00,000 for every 10%) Mtg. overheads: Fixed Variable (260,000 for every 10%) Selling overheads: Fixed Variable (250,000 for every 10%) 3,00,000 8.00.000 3,00,000 4.80.000 2,00,000 4.00.000 7,80.000 6,00,000 (4) Sales: at 60% Capacity at 80% Capacity Less: 5% 42,00,000 56,00.000 2.80.000 53,20,000 ABC Ltd. produces and sells a single product. Sales budget for the calendar year 2014 for each quarter is as under: Quarter No. of Units to be Sold 1 12,000 11 15,000 III 16,500 IV 18,000 The year 2014 is expected to open with an inventory of 4,000 units of finished product and close with an inventory of 6,500 units. Production is customarily scheduled to provide for two-thirds of the current quarter's demand plus one-third of the following quarter's demand. Thus production anticipates sales volume by about one month. The standard cost details for one unit of the product is as follows: : Direct materials 10 Kgs. @ 50 paise per kg. - Direct labour 1 hour 30 minutes @ 74 per hour. - Variable overheads 1 hour 30 minutes @31 per hour. Fixed overheads 1 hour 30 minutes @ *2 per hour based on a budgeted production volume of 90.000 direct labour hours for the year. . Answer the following: Prepare a production budget for the year 2014 by quarters, showing the number of units to be produced. () If the budgeted selling price per unit is 317, what would be the budgeted profit for the year as a whole? (m) in which quarter of the year the company is expected to break-even