A factory is currently working to 40% capacity and produces 10,000 units. At 50% the selling price falls by
3%. At 90% capacity the selling price falls by 5% accompanied by similar fall in prices of raw material.
Estimate the profit of the company at 50% and 90% capacity production.
The cost at present per unit is:
Material ` 10
Labour ` 3
Overheads ` 5(60% fixed)
The selling price per unit is ` 20/- per unit.