Question 4: During the FY 2020-21, P Limited has produced 60,000 units operating at 50% capacity level. The cost structure at the 50% level of activity is as under: Direct Material Direct Wages Variable Overheads Direct Expenses Factory Expenses (25% fixed) Selling and Distribution Exp. (80% variable) Office and Administrative Exp. (100% fixed) (RO) 300 per unit 100 per unit 100 per unit 60 per unit 80 per unit 40 per unit 20 per unit The company anticipates that in FY 2021-22, the variable costs will go up by 20% and fixed costs will go up by 15%. The selling price per unit will increase by 10% to RO 880 Required: (i) CALCULATE the budgeted profit/ loss for the FY 2020-21. (ii) PREPARE an Expense budget on marginal cost basis for the FY 2021-22 for the company at 50% and 60% level of activity and FIND OUT the profits at respective levels.