Q.5 Blue sky Company produces toys and other iterns for use in beach and resort areas. A small inflatable toy has come in the market that the company is anxious to produce and sell. The new toy will self for Rs. 3 per unit. Enough capacity exists in the company's plant to produce 15,000 units of the toy each month. Variable costs to manufacture and sell one toy would be Rs. 1.25, and fixed costs associated with the toy would total Rs. 35,000 per month. The company's Marketing Department predicts that demand for the new toy will exceed the 16,000 units that the company is able to produce. Additional manufacturing space can be rented from another company at a fixed cost of Rs. 1,000 per month. Variable costs in the rented facility would total Rs. 1.4 per unit due to somewhat less efficient operations than in the main plant

. Required: 1. Compute the monthly break-even point for the new toy in the units and in total sales Rupees. Show all computations 2. How many units must be sold each month to make a monthly profit of Rs. 12,000.

Q.5 Blue sky Company produces toys and other iterns for use in beach and resort areas. A small infiatable toy has come in the market that the company is anxlous to praduce and sell. The new toy will seil for Rs.3 per unit. Enough capacity exists in the company's plant to produce 16,060 units of the toy each month. Variable costs to manufacture and sell one toy would be Rs. 1.25, and fixed costs associated with the toy would total Rs. 35,000 per month. The company's Marketing Department predicts that demand for the new toy will exceed the 16,000 units that the company is able to produce. Additional manufecturing space cai be rented from another company at a fixed cost of Rs. 1,000 per month. Variable costs in the rented faclity would total Rs. 1.4 per unit due to somewhat less efficient operations than in the main plant. Required: 1. Compute the monthly breakeven polnt for the new toy in the units and in total sales Rupees. Show all computations. 2. How many units must be sold each month to make a monthly profit of Rs,12,000