Q.3. (i) Manyavar is a designer garment outlet, last year it started a separate section to sell daily wear shirts. Currently, it is selling 24,000 shirts annually. The store provides you the following financials for the year ended 31 December, 2020. Particulars Selling price per shirt Variable cost per shirt Fixed cost: Staff salaries for the year General office costs for the year Advertising costs for the year As a cost accountant of the firm, you are required to: Amount (Rs) 40 25 1,20,000 80,000 40,000 (a) Calculate the break-even point and margin of safety in sales revenue and number of shirts sold. (b) Assume that 20,000 shirts were sold in a year. Find out the net profit of the firm. (c) If it is decided to introduce selling commission of Rs 3 per shirt, how many shirts would be required to be sold in a year to earn a net income of Rs 15,000. (d) Assuming that for the year 2021, an additional staff salary of Rs 33,000 is anticipated and price of shirt is likely to be increased by 15%, what should be the break-even point in number of shirts and sales revenue? (ii) From the following particulars, find the (a) Material cost variance (b) Material price variance and (c) Material usage variance Quantity of material purchased: 3,000 units Value of material purchased: Rs 9,000 (6 Marks) Standard quantity of material required per tonne of finished product: 30 units Standard rate of material: Rs 2 per unit Opening stock of material: Nil Closing stock of material: 500 units Finished production during the period: 80 tonnes