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Find the above attached image and give the answer properly. The manager of a Co. provides you with the following information: Sales : 4,00,000 Costs:

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Find the above attached image and give the answer properly.

The manager of a Co. provides you with the following information: Sales : 4,00,000 Costs: Variable (60% of sales) Fixed cost : 80,000 Profit before tax : 80,000 Income tax (60%) Net profit 32,000 The company is thinking of expanding the plant. The increased fixed cost with plant expansion will be 340,000. It is estimated that the maximum production in new plant will be worth 2,40,000. The company also wants to earn additional income 3,200 on investment. On the basis of computations give your opinion on plant expansion

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