Question 2 Khan Ltd can render three different types of service (Alpha, Beta and Gamma) using the same staff. Various estimates for next year have been made as follows: Service Alpha Rs/unit Beta Rs./unit Gamma Rs./unit Selling price Variable material cost Other variable costs Share of fixed costs Staff time required (hours) Fixed costs for next year are expected to total Rs. 40,000. 12 Required: (a) If the business were to render only service Alpha next year, how many units of the service would it need to provide in order to break even? (Assume for this part of the question that there is no effective limit to market size and staffing level.) (b) If the business has a maximum of 10,000 staff hours next year, in which order of preference would the three services come? (c) If the maximum market for next year for the three services is as follows: Alpha 3,000 units Beta 2,000 units Gamma 5,000 units what quantities of which service should the business provide next year and how much profit would this be expected to yield