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b. The following information at 50% capacity is given. Prepare a flexible budget and forecast the profit or loss at 60%, 70% and 90% capacity. Particulars Expenses at 50% Capacity Amount $ 100,000 80,000 120,000 140,000 Fixed Expenses: Salaries Rent and Taxes Depreciation Administrative Expenses Variable Expenses: Materials Labor Others variable expenses Semi-Variable Expenses: Indirect Labor Others semi variable expenses $400,000 500,000 80,000 $300,000 180,000 It is estimated that fixed expenses will remain constant at all capacities. Semi variable expenses will not change between 45% and 60% capacity, will rise by 10%between 60% and 75% capacity, a further increase of 5% when capacity crosses 75%. Estimated sales at various levels of capacity are: Capacity S Sales 60% $2,500,000 70% 3,000,000 90% 3,500,000