A supermarket has sales of Rs. 40 lakhs in an accounting period with Rs. 12 lakhs of fixed cost and a Contribution margin ratio of 40%. With this level being the base level, answer the following questions:

a) What is the Break even point in Rupees of sales?

b) What is the margin of safety in rupees?

c) If the management desired a total post tax profit of Rs. 9,80,000, what would be the desired sales for the target profit (assume tax rate to be 30%)?

d) From base level, if the variable cost ratio increases to 70% and fixed cost reduces by Rs. 2 lakhs, find out the new BEP in rupees.

e) From base level, if the management decided to increase selling price of its products in such a manner so as to increase sales revenue by 5% (thus changing the VC ratio) and fixed cost increases by Rs. 1 lakh, find out the new BEP in rupees.

f) From the base level, if an additional advertising campaign which involved the spending of Rs. 4 lakhs of cost was to be sanctioned, what would be the minimum additional sales to justify this cost without changing existing profits?