Good Evening Sir, I had a doubt in the Q. That the Q. Has said to indicate the effect in net profit. According to me it means, we have to first prepare the flexible budget for 4000 and 6000 units and then compare the profit computed at these 2 levels with the profit at 8000 units whose details have been given in the Q. But the comparison of profit with the profit at 8000 units is not done in the solution.
So just wanted to clarify the same that whether the comparison is reqd or not as the Q. Has asked effect on net profit?
Thank you Sir!
For safer side you can create one extra column calculating profit at 8000 units and compare the same with unit level..it will hardly take 2 mins as all information is handy
Yes sir. Thank you so much!