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please solve asap Longman Pvt. Ltd. of Kolkata is currently operating at 80% capacity. The following is the income statement furnished by the company: Particulars
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Longman Pvt. Ltd. of Kolkata is currently operating at 80% capacity. The following is the income statement furnished by the company: Particulars Rs. in lakh Rs. in lakh Sales 640 Cost of sales: Direct materials 200 Direct expenses 80 Variable overheads 60 Fixed overheads 240 Total cost 580 Net income 60 The Managing Director has been discussing an offer from Middle East for the supply of a quantity, which will require 50% capacity of the factory. The price is 10% less than the current price in the local market. Order cannot be split. The capacity of the factory can be augmented by 10% by adding facilities at an increase of Rs.30 lakh in fixed cost. If the proposal is accepted with the increased facilities, compute the profitStep by Step Solution
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