A company has compiled the following data for the preparation of its budget for the year 2008-09 Particulars Product A Product B Product C Sale per month - units Selling Price Direct Materials Direct Labor: Department 1 Rs.5 per hour Department 2 Rs.4 per hour Variable Overheads Fixed Overheads: Rs.1, 50, 000 per month 8,000 Rs.40 per unit Rs.20 per unit 5 00 Rs.3 per unit 4,000 Rs.80 per unit Rs.48 per unit 10 4 Rs.3 per unit 6,000 Rs.100 per unit Rs.40 per unit 20 12 Rs.7 per unit After the budget was discussed, the following action plan was approved for improving the profitability of the company. I] Direct labour in department 1, which is in short supply should be increased by 15, 000 hours by spending fixed overheads of Rs.8, 000 per month. II] To boost sales, an advertisement program should be launched at a cost of Rs.10, 000 per month. III The selling price should be reduced by: A: 2.5%, B: 8.75%, C: 1% IV] The sales target have been increased and the sales department has confirmed that the company will be able to achieve the following quantities of sales. A: 12,000 units, B: 6, 000 units, C: 10, 000 units Required: Present the original budget for the year 2008-09 Set an optimal product mix after taking into the action plan into consideration and determine the monthly profit. In case the requirement of direct labour hour of department 2 in excess of 40, 000 hours is to be met by overtime working involving double the normal rate, what will be the effect of so working overtime on the optimum profit as computed in 2 above?