A factory is currently working at $50$ per cent capacity and produces $10,000$ units. Estimate the profits of the Company when it works to $60$ per cent and $80$ per cent capacity assuming that the company can sell whatever it produces.

At $60$ per cent working, raw material cost increases by $2$ per cent and selling price falls by $2$ per cent.

At $80$ per cent, raw material cost increases by $5$ per cent and selling price falls by $5$ per cent. At $50$ per cent working, the product costs Shs$\mathrm{.}180$ per unit and is sold at Shs$\mathrm{.}200$ per unit. The unit cost of Shs$\mathrm{.}180$ is made up as follows:

At $80$ per cent, raw material cost increases by $5$ per cent and selling price falls by $5$ per cent. At $50$ per cent working, the product costs Shs$\mathrm{.}180$ per unit and is sold at Shs$\mathrm{.}200$ per unit. The unit cost of Shs$\mathrm{.}180$ is made up as follows:

Shs

Material $100$

Labour $30$

Factory Overhead $30(40\%$ fixed$)$

Administration Overhead

What comments can you offer? $20(50\%$ fixed$)$