PROBLEM 12 The Absorption Costing Income Statement of a company is as follows: Normal Capacity in units 25,000 Sales in units 28,000 Production in units 27.000 Rs. Rs. 14.00,000 Sales Revenue @ Rs. 50 per unit Less: Manufacturing Cost of Goods Sold: Direct Material @ Rs. 5 each Direct Labour @ Rs. 10 each Variable Overhead @ Rs. 5 each Fixed Manufacturing Cost at the Rate of Rs. 8 each Total Manufacturing Cost Add: Opening Stock: 3,000 units @ Rs. 28 each Less: Closing Stock: 2.000 units @ Rs. 28 each Cost of Goods Sold Gross Profit before Adjustment Add: Fixed Cost over Absorbed Gross Profit after Adjustment Less: Non-manufacturing Overhead: 1,35,000 2,70,000 1.35,000 2.16,000 7,56,000 84.000 8,40,000 56,000 7.84.000 6,16,000 16.000 6,32,000 1.50,000 56,000 92.000 2.98.000 3,34.000 Fixed Office and Administrative Variable Selling Overhead Fixed Selling Overhead Total Non-manufacturing Cost Net Income Additional Information: The fixed manufacturing and office overhead includes depreciation of Rs. 74,000. Required: (1) Break-even sales Rupees for the period. (ii) Sales volume in Rs. to earn a profit of Rs. 4,00,000. (iii) Cash break-even sales in Rupees