Sterling Enterprises has prepared a draft budget for the next year as follows: 10,000 Units Rs. Rs. Sale price per unit 30 Variable costs per unit: Direct material 8 Direct labour (2 hours Rs. 3) 6 Variable overhead (2 hours Re. 0.50) 1 15 Contribution per unit 15 Budgeted contribution 1,50,000 Budgeted fixed costs 1,40,000 Budgeted profit 10,000 The Board of Directors is dissatisfied with this budget and asks a working party to come up with an alternate budget with a higher profit figures. The working party reports back with the following suggestions, which will lead to a budgeted profit of Rs. 25,000. The company should spend Rs. 28,500 on advertising and put the sales price up to Rs. 32 per unit. It is expected that sales volume would also rise, in spite of the price increase, to 12,000 units. In order to achieve the extra production capacity, however, the work force must be able to reduce the time taken to make each unit of the product. It is proposed to offer a pay and productivity deal, in which the wage rate per hour is increase to Rs. 4. The hourly rate for variable overhead will be unaffected. Prepare a revised budget giving effect to the above suggestion