ABC factory produces 24,000 units. The cost sheet gives the following information: Direct Materials Rs. 1,20,000

Direct Labour Rs. 84,000

Variable overheads Rs. 48,000

Semi variable overheads Rs. 28,000

Fixed overheads Rs. 80,000

Total Cost Rs. 3,60,000

Presently the product is sold at Rs. 20 per unit.

The management proposes to increase the production by 3,000 units for sales in the foreign market. It is estimated that semi-variable overheads will increase by Rs. 1,000. But the product will be sold at Rs. 14 per unit in the foreign market. However, no additional capital expenditure will be incurred

Q-1. What is the present profit of the company?

Q-2. What is the proposed profit of the company in the new market?

Q-3.What is a suggestion for a new market proposal whether the proposal accept or not