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.34 (Differential cost and export quotation) - A company is at present working at 90% of its capacity and producing 13,500 units per annum. It operates a Flexible Budgetary Control system. The following figures are obtained from its budget : Capacity utilisation 90% 100% Sales Rs. 15,00,000 Rs. 16,00.000 Fixed expenses 3,00,500 3.00.600 Semi-fixed expenses 97,500 1,00,500 Variable expenses 1,45,000 1,49,500 Units manufactured 13,500 15,000 Labour and material costs per units are constant under the present conditions. Profit margin is 10%. (a) You are required to determine the differential cost of producing 1,500 units by increasing capacity utilisation to 100 per cent. (b) What would you recommend as an export price for these 1,500 units after considering that overseas prices are much lower than inland prices.*