Quality Containers Ltd is an Australian-owned company located in Cairns, Australia. The company produces a single and popular heavy-duty container that is sold worldwide. It has spare capacity in its factory, and the company is planning to increase its market share. Production data are as follows:

It is currently working at 50% capacity and produces 15,000 units.

At 50% capacity, the unit costs are $190 per unit, and it is sold at $220 per unit.

The unit cost of $190 consists of the following:

Material: $90

Labor: $30

Factory overhead: $40 (40% fixed)

Admin overhead: $30 (60% fixed)

Required:

i) Determine the capacity in units at 100% or full capacity.

ii) Prepare a budgeted profit and loss statement at 50% capacity, using the format below.

	Output: 15,000 units (50% capacity)
	Per unit ($)	Total ($)
Sales
Material Cost
Labor Cost
Variable Factory Overhead
Fixed Factory Overhead
Variable Admin Overhead
Fixed Admin Overhead
Total Cost
Profit