Somesh of Agra presently operates its plant at 80% of the normal capacity to manufacture a product only to meet the demand of Government of Tamilnadu under a rate contract. He supplies the product for 400000 and earns a profit margin of 20% on sales realization. Direct cost per unit is constant. The indirect costs as per his budget projections are: Indirect Costs 20000 units 80% Capacity 22500 units 90% Capacity 25000 units 100% Capacity Variable Semi-Variable Fixed 3 80000 40000 80000 90000 42500 80000 100000 45000 80000 He has received an export order for the product equal to 20% of its present operations. Additional packing charges on this order will be + 1000. Arrive at the price to be quoted for the export order to give him a profit margin of 10% on the export price. Gleda Somesh of Agra presently operates its plant at 80% of the normal capacity to manufacture a product only to meet the demand of Government of Tamilnadu under a rate contract. He supplies the product for 400000 and earns a profit margin of 20% on sales realization. Direct cost per unit is constant. The indirect costs as per his budget projections are: Indirect Costs 20000 units 80% Capacity 22500 units 90% Capacity 25000 units 100% Capacity Variable Semi-Variable Fixed 3 80000 40000 80000 90000 42500 80000 100000 45000 80000 He has received an export order for the product equal to 20% of its present operations. Additional packing charges on this order will be + 1000. Arrive at the price to be quoted for the export order to give him a profit margin of 10% on the export price. Gleda