127,098 Variable Cost for APL: Maida Cost = 700*70*(490/50) = Rs. 480,200Vansanpathi Cost = 140*70*(500/15) = Rs. 326,666 Cost of sugar = 190*70*(1150/100) = Rs. 152,950 Material reimbursement cost from APL= Rs. 959,816 Casual Labor Cost = Rs. 21,000 Conversion Charges per Kilo = Rs. 1.5 Revenue from 70 tonnes = 1.5*1000*70 = Rs. 105,000 Cost per APL for conversion charges = 127,098 + 21,000 = Rs. 148,048 Profit from APL per month = 105,000 + 148,000 = -43,098 Profit from KCPL per month = 2,122,000 – 1,914,000 – 217,902 = Rs. 40,098 Total Profit per Month = 40,098 – 43,098 = Rs. -3000 Loss of = Rs. 3000 Profit from person: Cost of raw materials and labor: Cost of maida = 750*50*(500/50) = Rs. 375,000 Vansanpathi Cost = 150*120*(520/15) = Rs. 260,000 Sugar cost = 200*120*(1200/100) = Rs. 120,000 Cost of preservatives and packaging = Rs. 50,000 Casual Labor Cost = Rs. 15,000 Conversion rate paid by Pearson = 3 * 1000 * 50 = Rs. 150,000 Profit for KCPL due to Pearson = 150,000 – 15,000 = Rs. 135,000 Total Profit for KPCL = 135,000 – 141,000 = Rs. -6000 Loss = Rs. 60002. The process improvement and technical expertise that APL will bring with it