The Cost Sheet of a Company based on a budgeted volume of sales of $3,00,000$ units per Quarter is as under:

Particulars OMR per unit

Direct materials $5\mathrm{.}00$

Direct wages $2\mathrm{.}00$

Factory overheads $(50\%$ fixed$)6\mathrm{.}00$

Selling and Administrative overheads $($variable$)3\mathrm{.}00$

Selling Price $18\mathrm{.}00$

When the budget was discussed it was felt that the company would be able to achieve only a volume of $2,50,000$ units of production and sales per Quarter. The

Company therefore decided that an aggressive sales promotion campaign should be launched to achieve the following improved operations:

Proposal I:

$($a$)$ Sell $4,00,000$ units per quarter by sending OMR. $2,00,000$ on special advertising

$($b$)$ The factory fixed costs will increase by OMR$\mathrm{.}4,00,000$ per Quarter

Proposal II:

$($a$)$ Sell $5,00,000$ units per Quarter subject to the following conditions

$($b$)$ An overall price reduction of OMR. $2$ per unit is allowed on all sales $($c$)$ Variable Selling and Administration costs will increase by $5\%$

$($d$)$ Direct Material costs will be reduced by $1\%$ due to purchase price discounts

$($b$)$ The fixed factory costs will increase by OMR. $2,00,000$ more

You are required to prepare a Flexible Budget at $2,50,000$ units, $4,00,000$ units and $5,00,000$ units of output per quarter and calculate the profit at each of the above