How many units need to be sold to earn a target income of 3 million per year (in Indian Rupees).

How does the volume affect the return on equity and return on investment?

(all the values are attached)

EXHIBIT 3: EXPENSES RELATED TO THE VOLUME OF SALES PER MONTH (FOR 3,750 UNITS) EXHIBIT 5: ROUTINE EXPENSES PER MONTH Particulars Amount (?) Particulars Amount (?) Manufacturing cost 6,682,500 Administrative costs 20,000 Advertising expense 165,000 Office supplies 5,000 Promotional expense 82.500 Electricity 40,000 Electricity expense 82,500 Miscellaneous 5,000 Total expenses 7,012,500 Total monthly expenses 70,000 Source: Created by the case author based on company documents. Source: Created by the case author based on company documents. EXHIBIT 4: ESTIMATED INVESTMENT EXHIBIT 6: PERSONNEL COSTS PER MONTH Particulars Amount (2) Employee Designation Number of Employees Amount (?) Information technology infrastructure 1,575,000 1,250,000 Regional sales managers 3 1,080,000 Plant and machinery Business development managers 720,000 Building 100,000 Sales executives 864,000 Other miscellaneous assets (i.e., inventory) 200,000 288,000 Total investment 29,125,000 Office assistants Total monthly personnel costs 2,952,000 Source: Created by the case author based on company documents. Source: Created by the case author based on company documents. EXHIBIT 7: CAPITAL STRUCTURE Source Amount (7) Equity 21,915,000 Debt (bank loan) 8,050,000 Total capital 29,965,000 Source: Created by the case author based on company documents