S Ltd. is producing a component at the following cost: Nature of Cost Rs per Unit Cost of Raw Material Consumed 11.50 Labour Cost 4.00 Direct Expenses 2.50 Semi Variable Overheads - as a % of Direct Cost 18.0% Semi Variable Overheads - Variable component 40.0% Semi Variable Overhead - Fixed component 60.0% Fixed Overheads 11.00 Sales and Distribution Overheads - Total Cost 40,000 Other information provided is as under: Qty Production & Sold [Nos] Installed Capacity [Nos] Sale Price [Rs/ per unit] 10,000 14,000 42.00 Time left 0:18:2 The company wants to expand its sales to fully utilize its installed capacity. In order to do so the following is planned: (A) Reduction of 18% on Selling Price (B) Increase in labor cost by 5%, reduction in material cost by 4%. From the above information please advise whether the company should continue with its present volumes or go in for full capacity utilization.