I. A Ltd. is manufacturing readymade suits. It has annual production capacity of 2,000 pieces. The Cost Accountant has presented following information for the year to the management: Particulars Amount (Rs.) Amount (Rs.) Sales 1,500 pieces @ Rs. 1,800 per piece 27,00,000 Direct Material 5,94,200 Direct Labour 4,42,600 Overhead (40% Fixed) 11,97,000 22,33,800 Net Profit 4,66,300 Evaluate following options: (i) If selling price is increased by Rs. 200, the sales will come down to 60% of the total annual capacity. Should the company increase its selling price? (ii) The company can earn a profit of 20% on sales if the company provides CUFFLING with readymade suits. The cost of each CUFFLING is Rs. 18. Calculate the sales required to earn a profit of 20% on sales. [9] TT TI c. 11