(a) For quoting consultancy fee, it has been decided to provide for bonus at 20% of the fee payable to the officers and have a profit mark up at 25% on the total cost inclusive of such bonus. For a particular assignment, the cost has been estimated at Rs. 75,000. Compute the fee that should be charged, to provide for the aforesaid two elements. (b) Critically examine the following statements: (i) Marginal costing has marginal relevance. (ii) It is prudent to hold large inventories in an inflationary economy, and (iii) Lesser requirement of working capital by a firm compared to others in the same industry denotes efficient management of the funds by it. (a) For quoting consultancy fee, it has been decided to provide for bonus at 20% of the fee payable to the officers and have a profit mark up at 25% on the total cost inclusive of such bonus. For a particular assignment, the cost has been estimated at Rs. 75,000. Compute the fee that should be charged, to provide for the aforesaid two elements. (b) Critically examine the following statements: (i) Marginal costing has marginal relevance. (ii) It is prudent to hold large inventories in an inflationary economy, and (iii) Lesser requirement of working capital by a firm compared to others in the same industry denotes efficient management of the funds by it