Practice: 1. ABC company manufactures & distributes product X has provided the following information: (Rs. in crore) (Rs.) Sales 75000 Direct materials 30000 Direct labour 10000 Variable overhead 10000 Fixed overhead 15000 In order to increase its sales by Rs. 25000, the concern wants to introduce the product Y, and estimated cost for the same are as follows: (Rs.) Direct material 10000 Direct labour 8000 Variable overhead 5000 Fixed overhead Nil Advise whether the product Y will be profitable or not. 2. From the following Balance Sheet, comment on the solvency position (short term and long term) of the company: Liabilities Rs. Assets Rs. Equity Share Capital 200,000 Land and building 140,000 80.000