Accounting

Maxim Ltd. manufactures a product N-joy". In the month of August 2014, 14,000 units of the product "N-joy" were sold, the details are as under: Sale Revenue Direct Material Direct Labour Variable Overheads Fixed Overheads 2,52,000 1,12,000 49,000 35,000 28,000 A forecast for the month of September 2014 has been carried out by the General manger of Maxim Ltd. As per the forecast, price of direct material and variable overhead will be increased by 10% and 5% respectively. Required to calculate:(i) Number of units to be sold to maintain the same quantum of profit that made in August 2014. (80) Margin of safety in the month of August 2014 and September 2014