2018 The following data are available in a manufacturing company for a yearly period: Fixed expenses : Ex. 7. Wages and salaries Rent, rates and taxes Depreciation Sundry administrative expenses Semi-Variable expenses : (at 50% of capacity) Maintenance and repairs Indirect labour Sales department salaries Sundry administrative expenses Variable expenses : (at 50% of capacity) Materials Labour Other expenses 50% capacity 60% capacity 75% capacity 90% capacity 100% capacity Assume that the fixed expenses remain constant for all levels of production, semi-variable expenses remain constant between 45% and 65% of capacity, increasing by 10% between 65% and 80% capacity and by 20% between 80% and 100% capacity. Sales at various levels are : At 50% At 60% At 75% At 90% At 100% (lakhs) 9.50 6.60 7.40 6.50 2 lakhs 12 lakhs 3.50 7.90 3.80 2.80 25.20 lakhs 38.40 lakhs 48.40 lakhs] 21.70 20.40 7.90 98.00 Prepare a flexible budget, for the year and forecast the profits at 60%, 75% and 100% capacity. [Ans. (Plakhs) 100 120 150 180 200

17. The following data are available in a manufacturing comnanu fae Assume that the fixed expenses remain constant for all levels of production, semi-variable expenses remain constant between 45% and 65% of capacity, increasing by 10% between 65% and 80% capacity and by 20% between 80% and 100% capacity. Prepare a flexible budget, for the year and forecast the profits at 60%,75% and 100% capacity