Q1. The Cost of an article at the capacity level of 5,000 units is given under A below. For variation of 40% in capacity above or below this level, the individual expenses vary as indicated under B below: Particulars Material cost Labour cost Power Repairs and Maintenance Stores Inspection Administration overheads Selling overheads Depreciation Total Cost (A) in (2) 2,50,000 1,50,000 12,500 20,000 10,000 5,000 50,000 30,000 1,00,000 Nature (B) 100% Variable 100% Variable 80% Variable 75% Variable 100% Variable 20% Variable 25% Variable 50% Variable 100% Fixed 6,27,000 Cost per unit 125.50 Evaluate the changes in cost of production if company will produce 3,000 units and 7,000 units by preparing flexible production cost budget.