A company produces and sells a single product. The cost data per unit for the year 2017 is predicted as below: Rs. per unit 35 25 15 90 Direct Material Direct Labour Variable Overheads Selling Price The company has forecast that demand for the product during the year 2017 will be 28,000 units. However, to satisfy this level of demand, production quantity will be increased? There are no opening stock and closing stock of the product The stock level of material remains unchanged throughout the period. The following additional information regarding costs and revenue are given: 12.5% of the items delivered to customers will be rejected due to specification failure and will require free replacement. The cost of delivering the replacement item is Rs.5 per unit