Compute the Selling price, BEP in units in the following question:

(a). A company proposes to introduce new product in the market. It would like to maintain P/V Ratio@ 25%. If the Variable Cost (VC) of the product is per unit is Rs.300/- what should be the selling price per unit?

(b). ABC Ltd. sold 55000 units of its product at Rs.375/- per unit. Variable costs are 185/- per unit. Fixed costs incurred uniformly throughout the year amounted to Rs.61,75,000/-. You are required to compute the following:

1. Breakeven point in units 2. P/V Ratio 3. No. of units that must to sold to earn EBIT of Rs.500000/- 4. Sales level to achieve an after-tax income (PAT) of Rs.500000/- assuming a tax rate of 50%