Select one : A. 304,000 B. 404,000 C. 352,800 D. 152,800

8 As the accounting expert for a local firm of management consultants, you have been left with three scenarios to resolve for different clients. Scenario 1: West Ltd has the capacity to produce 6,000 waste paper bins per month, but is currently only operating at 70% efficiency. Annual fixed costs are 200,000 and the following current unit information is available: Direct material Direct labour 6 Selling price 26 Variable overhead What annual profit is generated at the current level of operation? 5