Question: please answer the question. Paste at Cut 33 Copy 5 Format Painter Clipboard Ii El :5 Paragraph 1 .'g.... Subtille Subtle Emp... PX company is
please answer the question.

Paste at Cut 33 Copy 5 Format Painter Clipboard Ii El :5 Paragraph 1 .'g.... Subtille Subtle Emp... PX company is at present working at 75% capacity producing 7500 units per annum. It operates aexible budgetary control system. Labour and material costs per unit are constant under present conditions. Prot margin is 15%. 75% capacity 1 00% capacity Sales 2000,000 25,00,000 Fixed expense 4,00,000 6,00,000 Semi Fixed Expense 90,000 100,000 Vari able Expens e 150,000 1,55,000 Unit Produced 7500 10000 (a) You are required to determine the differential cost of producing 2500 units by increasing capacity to 100%. (b) What would you recommend for an export order the minimum price taking into account that overseas prices are much lower than indigenous prices? (c) A differential cost can be a variable cost, a xed cost, or a mix of the two 7 there is no differentiation between these types of costs, since the emphasis is on the gross difference between the costs of the alternatives or change in output. Observing your decision making skills, justify how the differential cost will affect the decision making process in production department, marketing department, and sales department. Justify your argument through one practical example in each of the above stated departments
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