5.1.3: Royal Industries specialises in producing plastic buckets. Its income statement for the preceding quarter is presented below. Except as noted, the cost-revenue relationship for the coming quarter is expected to follow the same 'pattern as in the preceding year. Income statement for the preceding quarter ending December 31 .is as follows: WWW Less costs Variable costs Rs 3,60,000 Fixed costs 1,20,000 4,80.000 Earnings before taxes . ' 1,20,000 Less taxes (0.35) ' . _ 42,000 Earnings after taxes 78,000