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28 The master budget for Serse Ltd, a single-product firm, for the current year is as follows: Sales Variable materials (20,000 tonnes at 10 per tonne) Variable labour Variable overhead Fixed overhead Total cost Budgeted net profit 200,000 96,000 48,000 72,000 480,000 (416,000) 64,000 Serse Ltd has substantial excess production capacity. A sales enquiry has been received, late in the year, which will increase sales and production for the year by 25% over budget. The extra requirement for 5,000 tonnes of material will enable the firm to purchase 7,000 tonnes at a discount of 5% on its normal buying price. The additional 2,000 tonnes will be used to complete the year's budgeted production. Requirement What price should Serse Ltd charge for the special order in order to earn the same budgeted net profit for the year of 44,000? A 83,500 B 100,500 C 82,500 D 101,500 Ida