If Nipponply wants to earn 3,000,000 rupees per year, how many units need to be sold?

Thakkar's initial decision was to pursue a business plan that had a trading capacity of 45,000 units per year, but the actual production had to be based on market demand Thakkar estimated that, ultimately. 29,250 units could be sold per year at an average price of +2,200 per unit. Nipponply could produce 29,250 units with 65 per cent capacity utilization (1.e., the lowest level of capacity). For the second and third year. Thakkar estimated that Nipponply would have 38.250 units and 45,000 units with 85 per cent capacity utilization (a moderate level of capacity) and 100 per cent capacity utilization (the highest level of capacity), respectively. The initial investment in the project would cost $29.965 million, of which 21.915 million would be drawn from the firm's own resources, the rest would come from a bank loan at an interest rate of 11 per cent (see Exhibit 7). The life of the project was estimated to be fifteen years. The salvage value of the IT re, plant, and machinery at the end of fifteen years would be negligible and therefore could be ignored. The salvage value of the building machinery at the end of fifteen years would be *250,000 EXHIBIT 3: EXPENSES RELATED TO THE VOLUME OF SALES PER MONTH (FOR 3,750 UNITS) Particulars Manufacturing cost Advertising expense Promotional expense Electricity expense Total expenses Amount (3) 6,682,500 165,000 82.500 82,500 7,012,500 Source: Created by the case author based on company documents. EXHIBIT 4: ESTIMATED INVESTMENT Particulars Information technology infrastructure Amount (7) 1,575,000 1,250,000 26,100,000 200,000 29,125,000 Building Other miscellaneous assets (i.e., inventory) Total investment Source: Created by the case author based on company documents EXHIBIT 5: ROUTINE EXPENSES PER MONTH Particulars Administrative costs Office supplies Electricity Miscellaneous Total monthly expenses Amount (5) 20,000 5,000 40,000 5,000 70,000 Source: Created by the case author based on company documents EXHIBIT 6: PERSONNEL COSTS PER MONTH Employee Designation Regional sales managers Business development managers Sales executives Office assistants Total monthly personnel costs Number of Employees Amount (E) 3 1,080,000 720,000 6 864,000 3 288,000 2,952,000 Source: Created by the case author based on company documents. EXHIBIT 7: CAPITAL STRUCTURE Source Equity Debt (bank loan) Total capital Amount (7) 21,915,000 8,050,000 29,965,000