Q3Following information has been made available from the cost records of Salalah Time Limited, manufacturers of clocks, the data for 1000 clock is given below

Particulars	Total OMR	Per Unit OMR
Sales Variable Costs	15000 9000	15 9
Contribution Less Fixed Costs Profit	6000 2500 3500	6 2.50 3.50

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 differential costing