Question
4The HASF Ink Ltd income statement for the preceding year is presented below except as noted the cost / revenue relationship for the coming year
4The HASF Ink Ltd income statement for the preceding year is presented below except as noted the cost / revenue relationship for the coming year is expected to follow the same pattern as in the preceding year income statement for the year ending March 31 is as follow s
Sales (200,000 units @ 2.5 Each)Rs. 5, 00,000
Variable cost3, 00,000
Contribution margin2, 00,000
Less Fixed cost100,000
Profit before tax100,000
Less tax35,000
Profit after tax65,000
Required
The company management feels that it should earn at least Rs.10, 000 pre taxes per annum on the new investment what sales volume is required to enable the company to maintain existing profit.
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