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( i ) Rs . 5 0 , 9 3 7 . 5 0 6 . 3 7 % and 5 . 6 9 %

(i) Rs.50,937.50
6.37% and 5.69%. Second
Following information are available for a company regarding its costs
and sales :
Net Profit
Due to severe competition the company proposes to reduce the
selling price. In the coming year variable cost per unit (cost of material
and labour) is expected to go up by 20% and fixed cost will rise by
10%. You are required to calculate sales in units to maintain present
level of profit if the proposed reduction in selling price is : (i)5%
(ii)10%(iii)15%.
(R. U.
M.Com., 1998
Ans. : (i)73,044 units (ii)93,333 units (iii)1,29,231 units.ko
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