Illustration 6 The expenses budgeted for production of 10,000 units in a factory are furnished below: $per unit Sper unit Materials 70 Labour 25 Variable overheads 20 Fixed overheads ( $1,00,000) 10 Variable expenses (direct) 5 Selling expenses (10% fixed) 13 Distribution expenses (20% fixed) 7 Administration expenses ($50,000) 5 155 Total Prepare a budget for the production of (a) 8,000 units, and (b) 6,000 units. Assume that administration expenses are rigid for all levels of production