Example 12: The following data relate to a company which had a profit approved for selling 5,000 units per month at an average selling price of * 10 per unit and budgeted variable cost of production was 24 per unit and fixed costs were budgeted at Rs.20,000. Planned income being * 10,000 per month. Because of shortage of raw- materials the plant could produce only 4,000 units and the cost of production was increased by 0.50 per unit. Consequently * 1.00 raised the selling price per unit. To modify production processes in order to meet materials shortage, the Company incurred an expenditure of 1,000 in Research and Development. Set out a performance budget and a summary report there. Solution