The expenses budgeted for production of 1,000 units in a factory are furnished below:

Particulars Per Unit OMR.

Material Cost 700

Labour Cost 250

Variable overheads 200

Selling expenses (20% fixed) 130

Administrative expenses (OMR. 200,000) 200

Total Cost 1,480

Prepare a budget for production of 800 units assuming administrative expenses are rigid for all level of production.

a.

OMR 1,239,300

b.

OMR 1,250,000

c.

OMR 1,350,000

d.

OMR 1,229,200

direct answer with out explean