Q#03 The product of ABC company sells for Rs. 30 each having a variable cost of Rs. 22 per unit. The fixed costs are Rs. 600.000 and the company sells 200,000 units of this product per annum. The royalty payment of Rs. 8 per unit is also paid along with Rs. 14, the other variable costs per unit. The company believes that it should earn a profit margin of 10% on sales, and they want to pay a royalty rate that will produce this profit margin. What royalty per unit would permit the store to earn a 10% profit margin on sales, other things held constant? Q#04 Dawood Private Limited can manufacture shoes using two different production methods. First method requires a plant that incurs a variable cost of Rs. 2000 per unit and a fixed costs of Rs. 24.000.000. The other method requires a plant that incurs less fixed costs i.e. a fixed cost of only $5,000,000, but it would require a variable cost of Rs. 3000 per unit. Under both the methods, the sales price per unit is Rs. 4000. At what unit output level would the two methods provide the same operating income (EBIT)