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c) A security alarm manufacturer expects total annual fixed cost of Rs.180,000,000. The security alarm has a variable cost of Rs.2,700 with a selling price

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c) A security alarm manufacturer expects total annual fixed cost of Rs.180,000,000. The security alarm has a variable cost of Rs.2,700 with a selling price of Rs.4,500. i. Calculate how many devices should be sold to break-even. (02 marks) ii. Calculate profit to earn by selling 120,000 alarms. (02 marks) iii. The manufacturer has further noted that same plant (as it is under-utilized) can also be used to manufacture a component in a fire alarm and vehicle alarm. The plant's maximum annual operating capacity is 40,000 hours. The selling price, variable cost, and demand data are shown in Table Q4-1. Prepare a production plan, if the manufacturer has already signed a contract for 15,000 security alarm components, and 40,000 Fire alarm components and vehicle alarm components. Table Q4-1: Product Manufacturing Information Security alarm Fire alarm Selling price (per circuit) 4,500.00 2,900.00 Variable cost (per circuit) 2,700.00 1,750.00 Requirement - Machine hours per unit 0.5 0.2 Maximum annual demand (in units) 35,000 50,000 Vehicle alarm 3,250.00 1,850.00 0.4 40,000

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