SunBright Appliances Ltd., founded in 2005, is a growing Indian manufacturer of three types of home appliances: Air Conditioners (ACs), Washing…

SunBright Appliances Ltd., founded in 2005, is a growing Indian manufacturer of three types of home appliances: Air Conditioners (ACs), Washing Machines (WMs), and Refrigerators (RFs). The company has built a reputation for quality and durability in the mid-range market segment and has seen stable demand across urban and semi-urban markets. In recent years, it has invested in modernizing its production facilities with semi-automated machinery and upgraded ERP systems to support cost control and performance monitoring. SunBright is currently facing a multi-dimensional challenge: Increasing input costs (particularly raw materials and electricity)Intense competition from both multinational brands and low-cost domestic playersDemand fluctuation due to seasonal sales cycles and changing consumer preferencesPressure on profit margins, especially in the washing machine segmentSustainability targets and pressure to reduce carbon footprint by optimizing energy usage and waste To stay competitive, the board has asked the finance and operations teams to assess: Cost structures and process efficienciesProfitability by product lineFeasibility of accepting foreign bulk ordersOperational variances impacting budgets and performance Following data is available for the quarter: Particulars ACs WMs RFs Units Produced 5,000 6,000 4,000 Units Sold 5,000 6,000 4,000 Direct Material Cost per Unit 7,500 5,000 6,000 Direct Labour Hours per Unit 6 hrs 4 hrs 5 hrs Direct Labour Rate 250/hr 250/hr 250/hr Selling Price per Unit 18,000 14,000 16,000 Standard Labour Hours 5.5 hrs 3.5 hrs 5.5 hrs Overhead Costs for the Quarter: Activity Total Overhead (₹) Cost Driver Driver Quantity (Total) Machine Setups 9,00,000 No. of setups 180 setups Quality Inspections 6,00,000 No. of inspections 300 inspections Material Handling 7,50,000 No. of material moves 500 moves Utilities & Maintenance 15,00,000 Machine hours 30,000 machine hours Activity Driver Consumption: Product Setups Inspections Material Moves Machine Hours ACs 60 90 200 12,000 WMs 70 100 150 10,000 RFs 50 110 150 8,000 SunBright also received a special order from a foreign buyer for 500 WMs at 12,000 each. This order requires an Additional packaging cost of 150/unit. However, no marketing costs will be incurred. Also, it can only be accepted fully. Budgeted overhead of the company is 37,00,000. On the basis of above information and requirements of the board, you are required to answer the following questions: