ILLUSTRATION 16. (Calculation of Amount of Policy) CCL wants to take up a Loss of profit policy. Turnover during the current year is expected to increase by 20%. The company will avail overdraft facilities from its bank @ 15% interest to boost up the sales. The average daily overdraft balance will be around 3 lakh. All other fixed expenses will remain same. Following further details are also available from the previous year's account: Total Variable Expenses $ 24,00,000; Fixed Expenses : Salaries $3,30,000; Rent, Rates and Taxes $30,000 ; Travelling Expenses $50,000; Postage, Telegram, Telephone $60,000; Directors' Fees $10,000; Audit Fees $20,000; Miscellaneous Income $70,000; Net Profit $4,20,000 Determine the amount of policy to be taken for the current year