Sona Corporation has filed the following income statement for the year ending 31st March, 2003.

The actual number of hours direct labour worked, in the year under review is 2,06,000. As a consequence of delays in filling vacancies of employees who quit, 6,000 potential direct hours were not worked, and the actual hours worked were 4,000 hours of trainees, half the time of which was unproductive. The costs incurred in consequence of re-employment were as follows:

(a) Separation costs Rs. 25,630;

(b) Selection costs Rs. 32,080;

(c) Recruitment costs Rs. 23,140 and

(d) Training costs Rs. 31,160.

Calculate the profit foregone on account of labour turnover (round off to the nearest rupee) and the potential return on capital and sales and turnover ratio.

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Particulars Sales Less variable costs: Material Direct labour Variable factory overheads Variable selling and distribution overheads Contribution Less fixed overheads Net income before tax Capital employed Rs. 6,01,000 5,19,000 3,20,000 1,90,000 Rs. 24,00,000 16,30,000 7,70,000 5,30,000 2,40,000 12,00,000