2-4. Differential cost. Management of Gul Carpets expects annual net increase of Rs.900,000 in sales (differential revenue) if the company starts selling carpets through its own showrooms, to be set up at different suitable places. Presently, to reach customers the company supplies its manufactured carpets to the dealers at whole sale price. Cost data for the two alternatives is presented below: Variable Cost Items or Present Distribution Method Fixed 7752 Different- ial Costs Rent of showrooms Lighting & Air-conditioning Sales staff salary Sales Commission Transportation Packing materials Net differential cost Proposed Distribution Method Rs. 300.000 110,000 275.000 50,000 45,000 35,000 Rs. 100.000 250,000 35.000 10,000 Required: (1) Compute net differential cost? Note: Reproduce the above table on your answer sheet and fill in the coloumns left blank (2) Recommend, whether the company should adopt the proposed method of distribution