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Q#4The HASF Ink Ltd income statement for the preceding year is presented below except as noted the cost/revenue relationship for the coming year is

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Q#4The HASF Ink Ltd income statement for the preceding year is presented below except as noted the cost/revenue relationship for the coming year is expected to follow the same pattern as in the preceding year income statement for the year ending March 31 is as follows Sales (200,000 units @ 2.5 Each) Rs. 5,00,000 Variable cost 3,00,000 Contribution margin 2,00,000 Less Fixed cost 100,000 Profit before tax 100,000 Less tax 35,000 65,000 Profit after tax Required The company management feels that it should earn at least Rs.10, 000 pre taxes per annum on the new investment what sales volume is required to enable the company to maintain existing profit.

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