1. GCL Ltd. Produced and sold 15, 000 school bags during the financial year 2020-21. The average selling price per bag is 110. The companys variable cost for manufacturing is 40 per unit and variable marketing is 20 per unit. The total fixed cost of the company is 5, 60, 000.

Answer the following questions independently,

1. How many units the company has to produce and sale to reach the breakeven situation?
2. What is the Margin of Safety (in rupees) of the company?
3. In the next financial year (2021-22), the company is expecting that its variable manufacturing cost will increase by 20% and the selling price per unit will also go up by 20%. The company wants to earn the same amount of profit like the previous financial year (2020-21). In that case, how many units of school bags the company will have to sale to earn its target profit?