The flexible budget at 80% capacity of Archita Ltd. is as given below: Production 6000 unit Materials 3000 Labour 21000 Overheads: Variable 12000 Semi-variable 7000 Fixed 20000 Sales Value 120000 An offer for additional 750 units sale is available if it is supplied at 14.00 each. If the semi-variable overheads increase only by 250 for the additional production, will it be advisable to accept the offer?

[Ans. , 5,750

The flexible bud : Production \begin{tabular}{lr} Materials & 6,000 units \\ Labour & \\ Overheads : & 3,000 \\ Variable & 21,000 \\ Semi-variable & 12,000 \\ Fixed & 7,000 \\ Sales Value & 20,000 \\ 14.00 & 1,20,000 \end{tabular} 14.00 750 - 250 , ? An offer for additional 750 units sale is available if it is supplied at 14.00 each. If the semi-variable overheads increase only by 250 for the additional production, will it be advisable to accept the offer? [Ans, , 5.750