Question: Trishna limited are currently using 60% of their total capacity. Total units manufactured are 3,600 units. The management is planning to increase its capacity by 20%. The following is the summary of their costs.
Particulars Amount (Rs)
Direct materials 5
Direct Wages 3
Direct Expense 1
Fixed costs 10
Sales 22
Prepare a statement showing the proposed increase in capacity and also comment on the change due to increase in the capacity.