Q$\mathrm{.}2$ Answer the following:

$2.$A The accountant of manufacturing company provides you following details for year $2021-22$:

During the year, the company manufactured two products A and $B$ and output and costs were:

Variable factory overhead is absorbed as a percentage of direct wages. Other variable costs have

been computed as: Product A: Rs$.0\mathrm{.}25$ per unit; and B: Rs$.0\mathrm{.}30$ per unit.

During $2022-23,$ it is expected that the demand for product A will fall by $25\%$ and for B by $50\%.$

It is decided to manufacture a further product $C,$ the cost for which is estimated as follows:

It is anticipated that the other variable costs per unit will be the same as for Product A$.$

Prepare a budget to present to the management, showing the current position and the position for

$2022-23.$ Comment on the comparative result.