Accounting

SK Lit. is engaged in the manufacture of tyres. Analysis of income statement indicated a profit of * 150 lakhs on a sales volume of 50,000 units. The fixed costs are * 850 lakhs which appears to be high. Existing selling price is $3,400 per unit. The company is considering to revise the profit target to 350 lakhs. You are required to compute - (1) Break-even point at existing levels in units and in rupees. (ii) The number of units required to be sold to earn the target profit. (ii) Profit with 15% increase in selling price and drop in sales volume by 10%. (iv) Volume to be achieved to earn target profit at the revised selling price as calculated in (ii)above, if a reduction of 8% in the variable costs and 85 lakhs in the fixed cost is envisaged