Q8. Figure regarding sales, cost and profit at 50% capacity are given below: Sales 20,00,000 Direct cost 8,00,000 Factory overheads 4,00,000 Office overheads 2,00,000 Selling overheads 3,00,000 Profit 3,00,000 Every 10% increase in sales beyond 50% capacity is possible only after reducing the price by 1% on the base level of 50% capacity. Direct material cost is 25% of the total direct cost at 50% capacity. With every 10% increase in capacity above this level, the price of direct material comes down by 2%, 50% of the factory overheads are fixed and the rest are fully variable. Office overheads are of step character. Every 10% increase in output results in 2% increase in office overheads over 50% capacity. Selling overheads increase in proportion of sales value. Prepare a flexible budget at 80% capacity