XYZ Ltd. Is currently working at 50% capacity and produces 10,000 units. At 60% capacity raw material cost increased by 2% and selling price falls by 2 percent. At 8% capacity raw material cost increased by 5% and selling price falls by 5%. At 50% capacity the product costs Rs. 180 per unit and is sold at Rs. 200 per unit. The unit cost of Rs. 180 comprises the following.

Prepare a marginal cost statement showing the estimated profit of the business when it is operating at 60% and 80% of capacity. 

To prepare a marginal cost statement and calculate the estimated profit at different capacity levels, we need to consider the changes in raw material cost, selling price, and the cost structure. Let's calculate the estimated profit for XYZ Ltd. at 60% and 80% capacity.

First, let's calculate the cost components at 50% capacity:

Material cost per unit = Rs. 100
Wages per unit = Rs. 30
Factory overheads per unit = Rs. 30 (40% fixed)
Administrative overheads per unit = Rs. 20 (50% fixed)

Total cost per unit = Material cost + Wages + Factory overheads + Administrative overheads
Total cost per unit = Rs. 100 + Rs. 30 + Rs. 30 + Rs. 20
Total cost per unit = Rs. 180

Selling price per unit = Rs. 200

Profit per unit = Selling price per unit - Total cost per unit
Profit per unit = Rs. 200 - Rs. 180
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