A laboratory carrying out various tests on products produced by various drug companies to ascertain whether drugs are fit for medical use or nol. At…

A laboratory carrying out various tests on products produced by various drug companies to ascertain whether drugs are fit for medical use or nol. At present, the laboratory carries out 10,000 tests each year and a survey carried out by the laboratory shows a rise in number of tests to 15,000 tests a year, to carrying out all these tests would require an additional shift to be worked. The current cost of carrying out a full test is: ₹ per test Materials 1,800 Technicians' fees 180 Variable expenses 45 Fixed cost 200 Working the additional shift would (i) require a shift premium of 50 per cent to be paid to the technicians on the additional shift; (ii) enable a quantity discount of 10 per cent to be obtained for all materials if an order was placed to cover 15,000 tests; (iii) Increase fixed costs by ₹5, 00,000 per year. The current fee per test is ₹ 2500. (1) Calculate the profit for the period at the current capacity of 10,000 tests. (2) A profit statement if the additional shift was worked and 15,000 tests were carried out.