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Compute the Selling price, BEP in units in the following question: (Total Marks= 8) (a). A company proposes to introduce new product in the market.

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Compute the Selling price, BEP in units in the following question: (Total Marks= 8) (a). A company proposes to introduce new product in the market. It would like to maintain PN Ratio@ 25\%. If the Variable Cost (VC) of the produ is per unit is Rs. 300/ - what should be the selling price per unit? (Marks - 2) (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 th 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% (Marks 41.5=6 )

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