Problem 9.36 (Break-even Analysis). You have been approached by a friend who is seeking your advice as to whether he should give up his job as an engineer, with a current salary of Rs. 14,800 per month It is very difficult to forecast the sales potential of the component, but after some research, your friend has estimated the sales as follows: (1) Between 600 and 900 components per month at a selling price of Rs. 250 per component. (ii ) Between 901 and 1,250 components per month at a selling price of Rs. 220 per component for the entire lot. The cost of the parts required would be Rs. 140 for each completed components. However, if more than 1,000 components are produced in each month, a discount of 5% would be received from the supplier of parts on all purchases. Assembly cost would be Rs. 60,000 per month up to 750 components. Beyond this level of activiiy assembly costs would increase to Rs. 70,000 per month. Your friend has already spent Rs. 30,000 on development, which he would write-off over the first five years of the venture. Required: (1) Calculate for each of the possible sales levels at which your friend could expect to benefit by going into the venture on his own (ii) Calculate the break-even point of the venture for each of the selling price. (ii) Advise your friend as to the viability of the venture