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Income statement for the year ending March 31 for Zinc incorporation is as follows. Except as noted, the cost revenue relationship for the coming year

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Income statement for the year ending March 31 for Zinc incorporation is as follows. Except as noted, the cost revenue relationship for the coming year as expected to follow the same pattern as in the preceding year: Sales (2,00.000 bottles @ Rs 2.5 paise each) Variable costs R$ 5,00,000 R$ 3,00.000 Fixed costs 1,00.000 4,00.000 Pre-tax profit 200.000 Less: Taxes 35,000 Profit after tax 65.000 1. What is the break-even point in amount and units? 2. Suppose that a plant expansion will add Rs 50,000 to fixed costs and increase capacity by 60 per cent. How many bottles would have to be sold after the addition to break-even? 3. At what level of sales will the company be able to maintain its present pre-tax profit position even after expansion 4. The company's management feels that it should earn at least Rs 10.000 (pre tax per annum) on the new investment What sales volume arred to the company to maintain existing profits and earn the minimum required return on new investments

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