127,098 Variable cost for APL: Cost of maida = 700*70*(490/50) = Rs. 480,200 Cost of Vansanpathi = 140*70*( 500/15) = Rs. 326,666Cost of sugar = 190*70*(1150/100) = Rs. 152,950Cost of reimbursement of materials from APL= Rs. 959,816Casual labor costs = Rs. 21,000 Conversion charges per kilo = Rs. 1.5 Income from 70 tonnes = 1.5*1000*70 = Rs. 105,000 Cost to APL for conversion charges = 127,098 + 21,000 = Rs. 148,048 Profit of APL per month = 105,000 + 148,000 = -43,098 KCPL profit 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 of person: Cost of raw materials and labor: Cost of maida = 750*50*(500/50) = Rs. 375,000 Cost of Vansanpathi = 150*120* 50,000 Casual labor charges = Rs. 15,000 Conversion rate paid by Pearson = 3 * 1,000 * 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. - 6000Loss = Rs. 60002. The process improvement and technical expertise that APL will bring with it