Electronic Ltd produces an ultra-sensitive amplifier, the selling price of which is K500, while the standard cost of K350 is mad up as follows: Page 16 of 18 K 200 50 Direct materials Direct labour Variable overhead Fixed overhead 20 80 The factory is currently producing 100,000 amplifiers per year, this output representing 100% capacity at single shift working. Demand for the amplifier is in excess of production and the marketing manager considers that an increase of 50% in the quantity sold could be achieved during the forthcoming year. A second shift has been proposed. This would increase production capacity to 180,000 amplifiers per annum and would attract additional fixed overhead of K5,500,000. A shift work premium of 20% would be payable to the direct labour force engaged on the second shift, but if production were to be increased to 150,000 units per annum, the whole of the direct materials used would qualify for a large user' discount of 10%. Required Prepare statements showing: (i) Whether it would be profitable for Electronics Ltd to add the second shift in order to meet the increased demand; The minimum increase in production/sales to justify the additional of the second shift. (ii)