12 A manufacturer produces 8,000 units per mensum, split up cost and sales value of which is given below: Per unit Rs. Direct material Direct labour Fixed overheads (Rs. 2,00,000) Variable overheads Selling and distributive expenses : Fixed (Rs. 80,000) Variable Elu Elaz 1888%? 140 General Administration etc. (fixed Rs. 2,40,000) Margin of Profit (subject to taxation) Selling Price Due to increase in demand and consequent extension of deli- very dates and dissatisfaction among customers, the management decided to provide for an output of 12,000 units per mensum in the next year (against an anticipated demand for 15,000 units) which would involve a capital outlay of Rs. 6,00,000 on which interest and finance charges would amount to 10% per annum. Prepare a com. parative consolidated cost statement showing anticipated margin of profit for the present output (of 8,000 units) and the proposed output (of 12,000 units). Assume that in the coming year there will be an all-round increase of 5% in the different items of expenses except fixed expenses. Due to the proposed increase in output (if the proposal is adopted) there will be an increase of 25% in "Fixed overheads, 20% in "Fixed Selling and Distribution Expenses" and 10% in "General Administration etc." apart from interest and finance charges. If it is decided to maintain the present level of sales, an in- for the level of production at 8,000 unks per mensum. for ease of 2% in sales price is possible and this figure should be taken