Q3 Following information has been made available from the cost records of Salalah Time Ltd, manufacturers of clocks: Particulars Per Unit OMR Tota 1 OM R 15000 Sales 15 Variable Costs 9000 9 Contribution 6000 6 Less Fixed Costs 2500 2.50 3500 3.50 Profit With this cost structure and price the company has succeeded to sell 5000 clocks last year. The company expects intense competition during the current year due to new entrants. To meet the growing demands of the competition, the firm intends to reduce the price by 10 per cent which in the opinion of marketing manager of the firm might increase the existing sales by 40 per cent. You are requested to assess the impact of the proposed action on the existing profits of the firm by employing Marginal costing