The manager of a Co. provides you with the following information: $ Sales : 4,00,000 Costs: Variable (60% of sales) Fixed cost : 80,000 Profit before tax : 80,000 Income-tax (60%) Net profit :. 32,000 The company is thinking of expanding the plant. The increased fixed cost with plant expansion will be $40,000. It is estimated that the maximum production in new plant will be worth $2,40,000. The company also wants to earn additional income $3,200 on investment. On the basis of computations give your opinion on plant expansion