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4. IPL Iid is currently operating at 75% of its capacity. In the past two years the level of operations were 55% and 65% respectively. Presently the production is 150000 unts. The company is planning to achieve 85% capacity level in the next year. Page 3 of 6 With the change in level of production in the next year at 85% capacity level there will be an increase in the various cost categories as follows: Prepare a flexible budget for the next year at 85% capacity level and ascertain profit assuming a target profit margin of 20% on sales. (10 marks)