11) Selling price per unit fail by 5% At 50% level selling price per unit 20 20 - 5% = 219 per unit. 4) Factory Overheads Partly fixed partly variable At 50% level given 33 (40% Fixed) - 1.20 per unit fixed 1.80 per unit variable Variable cost changes as per units changed & fixed cost 1.20 x 10000 = 12000 it is fixed at all the levels of activity. Note : Same for Administrative overheads Illustration No. 11 The following information relates to the productive activities of S.K. Ltd. for three months ending on 31st March, 2012. Particulars Fixed Expenses : Management Salaries 210000 Rent & Taxes Depreciation of machinery 175000 Sundry Office Expenses 222500 747500 Semi variable Expenses (at 50%) Capacity) Plant Maintenance 62500 Indirect Labour 247500 327 140000 Salesmen's Salaries Sundry 72500 65000 447500 Variable Expenses (at 50% Capacity) Material Labour Salesman's Commission 600000 640000 95000 1335000 It is further noted that semi variable expenses remain constant between 40 and 70% capacity, increase by 10% of the above figures between 70 and 85% capacity and increase by 15% of the above figures between 85 and 100% capacity. Fixed expenses remain constant whatever the level of activity may be. Sales at 60% capacity are 25,50,000, 80% capacity 334,00,000 and 100% capacity 342,50,000. Assuming that all items produced are sold you are required to prepare a flexible budget at 60,80 & 100% capacity