Analyze the following case and answer the given questions.

A sports manufacturing company budgeted a sales of 100,000 units having a value of Rs 100,000. The variable costs were forecasted to be Rs 40,000 and the fixed costs were estimated to be Rs 50,000.

Analyse and Evaluate each situation below.

1. Calculate the P/V Ratio, Sales at BEP and Margin of Safety in the base case mentioned above?

2. Explain the effect of 20% increase in physical sales volume on P/V Ratio, Sales at BEP and Margin of Safety?

3. Explain the effect of 5% increase in variable costs on P/V Ratio, Sales at BEP and Margin of Safety?

4. Explain the effect of 10% increase in fixed costs on P/V Ratio, Sales at BEP and Margin of Safety?

5. Explain the effect of 10% decrease in selling price and 10% increase in sales volume on P/V Ratio, Sales at BEP and Margin of Safety?