$1.3-39$ Gross margin and contributoin margin. Ramesh Fork Pvt$.$ Ltd$\text{'}$s$.$ income statement for the currebt year at the level of production and sales of $2,00,000$ units is as follows:

Revenues Rs$.26,00,000$

Cost of Goods Sold: $16,00,000$

Gross Margin $10,00,000$

Marketing and Distribution costs $11,50,000$

Operation Income $($Loss$)$ Rs$.(1,50,000)$

Ramesh's fixed manufacturing costs are Rs$.5,00,000$ and variable marketing and distribution are Rs$.4$ per unit.

$1.$ a$.$ Calculate Ramesh's variable manufacturing cost per unit in current year.

B$.$ Calculate Ramesh's fixed marketing and distribution costs in current year.

$2.$ Ramesh's gross margin per unit is Rs$=($Rs$\mathrm{.}10,00,000/2,00,000$ Units$).$ Sudhir, Ramesh's president, believes that it production and sales had been $2,30,000$ units, it would have also recovered Rs$.1,50,000$ of the marketing and distribution costs $($Rs$.11,50,000/5=2,30,000)$ and enabled Ramesh's to breakeven for the year. Calculate Ramesh's operating income if production and sales equal $2,30,000$ units, Explain briefly why Sudhir is wrong.

$3.$ Calculate the breakeven point for current year in Units and in Revenues.