estion # $8$: Shakeel Co$,$ Inc. manufactures VDO Games. Last year Shakeel Co sold $25,000$ games a P$.$

$15\mathrm{.}000$ each. Total costs amounted to Rs $300$ million of which Rs $100$ million were consider

fixed.

In an attempt to improve its product, the company is considering replacing a component part is has a cost of Rs $1,000$ with a new and better part costing Rs $2,000$ per unit in the coming year. new machine will be purchased for replacing the part. The machine would cost Rs $12\mathrm{.}5$ mil with a useful life of $10$ year, and per year depreciation on machine is $1\mathrm{.}25$ million.

Required:

What was Shakeel Co's break$-$even point in number of units last year?

$2.$ If Shakeel Co holds the sale price constant and makes the suggested changes, how ma$.$

units of product must be sold in the coming year to break even?

If Shakeel Co wishes to maintain the same contribution margin ratio, what seling pa per unit of product must it charge next year to cover the increased direct$-$material cost