Pentax Limited has prepared its expense budget for 20,000 units in its factory for the year 2026 as detailed below: (₹ per unit) Direct Materials 50…

Expense Budget of M/s Pentax Ltd. Particulars 20,000 Units (₹) 15,000 Units (₹) 18,000 Units (₹) Direct Material 10,00,000 (20,000 x 50) 7,50,000 (15,000 x 50) 9,00,000 (18,000 x 50) Direct Labour 4,00,000 (20,000 x 20) 3,00,000 (15,000 x 20) 3,60,000 (18,000 x 20) Variable Overhead 3,00,000 (20,000 x 15) 2,25,000 (15,000 x 15) 2,70,000 (18,000 x 15) Direct Expenses 1,20,000 (20,000 x 6) 90,000 (15,000 x 6) 1,08,000 (18,000 x 6) Selling Expenses (Variable)* 2,40,000 (20,000 x 12) 1,80,000 (15,000 x 12) 2,16,000 (18,000 x 12) Selling Expenses (Fixed)* (3 x 20,000) 60,000 60,000 60,000 Factory Expenses (Fixed) (7 x 20,000) 1,40,000 1,40,000 1,40,000 Administration Expenses (Fixed) (4 x 20,000) 80,000 80,000 80,000 Distribution Expenses (Variable)** 2,04,000 (10.20 x 20,000) 1,53,000 (10.20 x 15,000) 1,83,600 (10.20 x 18,000) Distribution Expenses (Fixed)** (1.80 x 20,000) 36,000 36,000 36,000 Total 25,80,000 20,14,000 23,53,600 *Selling Expenses: Fixed cost per unit = 15 x 20% = 3 Fixed Cost = 3 x 20,000 units = 60,000 Variable Cost Per unit = 15 -3 = 12 **Distribution Expenses: Fixed cost per unit = 12 x 15% = 1.80 Fixed Cost = 1.80 x 20,000 units = 36,000 Variable cost per unit = 12 - 1.80 = 10.20