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Normal annual capacity of Karachi Company is 200,000 units and the sales price is Rs.32 per unit. Unit cost of components is as under: Variable

Normal annual capacity of Karachi Company is 200,000 units and the sales price is Rs.32 per unit. Unit cost of components is as under:

Variable cost per unit (Rs.) Fixed Cost(Rs.)

Direct material 9.00 --

Direct labour 10.0 --

Factory overhead 2.00 400,000

Non-manufacturing cost 3.00 100,000

Total cost 24.0 500,000

Required:

  1. Calculate the breakeven point in rupees
  2. Calculate the breakeven point in units.
  3. Compute amount of sales required to earn a profit of Rs.420,000.

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