1. Crystal Clear Company manufactures and sells transformers for use in small industrial equipment. For its 2019 budget, Crystal Clear Company estimates the following: Selling price Rs 7,000 Variable cost per engine Rs 2,000 Annual fixed costs Rs 5,560,000 Net income Rs 900,000 Income tax rate 40% The first-quarter income statement, as of March 31, reported that sales were not meeting expectations. During the first quarter, only 300 units had been sold at the current price of Rs 7,000. The income statement showed that variable and fixed costs were as pianned, which meant that the 2019 annual net income projection would not be me unless management took action. A management committee was formed and presered the following mutually exclusive alternatives to the president: a) Reduce the selling price by 15%. The sales organization forecasts that at this significantly reduced price, 1,400 units can be sold during the remainder of the year. Total fixed costs and variable cost per unit will stay as budgeted. b) Lower variable cost per unit by Rs 750 through the use of less-expensive direct materials. The selling price will also be reduced by Rs 800, and sales of 1,130 units are expected for the remainder of the year. c) Reduce fixed costs by 5% and lower the selling price by 25%. Variable cost per unit will be unchanged. Sales of 1,500 units are expected for the remainder of the year. 1) If no changes are made to the selling price or cost structure, determine the number of units that Crystal Clear Company must sell (a) to break even and (b) to achieve its net income objective. 2) Determine which alternative Crystal Clear Company should select to achieve its chiective Show your calculation