Read the following passage and solve the questions based on it.
KK, an aspiring entrepreneur wanted to set up a pen drive manufacturing unit. Since technology was changing very fast, he wanted to carefully gauge the demand and the likely profits before investing. Market survey indicated that he would be able to sell 1 lakh units before customers shifted to different gadgets. KK realized that he had to incur two kinds of costs – fixed costs (the costs which do not change, irrespective of numbers of units of pen drives produced) and variable costs ( variable cost per unit multiplied by number of units). KK expected fixed cost to be
Rs 40 lakhs and variable cost to be Rs 100 per unit. He expected each pen drive to be sold at Rs 200.
KK was doubtful that per unit variable might increase by 10% though the demand might remain same. What will be the expected changes in profit in such a case?