Q.6. Rehman Limited (RL) manufactures a single product namely Beta. Following information pertains to product Beta for recent year ended 30th June 2018: Sales Revenue 02 03 04 02 02 04 03 2 Rs. 300 million Contribution margin 20% Annual fixed factory overheads cost Rs. 20 million Rs. 25 million 25% Annual Administration cost Tax rate During the next year, which will end on 30th June 2019, the company has projected the following changes: Required: Sale price will increase by 10% but sales volume will decrease by 5% Variable cost per unit will increase by 4% due to inflation Annual fixed factory overheads cost will increase by 10% due to inflation (a) Define Margin of Safety. (b) Calculate Net Profit before Tax for the year ended 30th June, 2018. (c) Calculate Net Profit before Tax for the year ended 30th June, 2019. (d) Calculate Contribution Margin Ratio for the year ended 30th June, 2019. (e) Calculate Breakeven Sales Revenue for the year ended 30th June, 2019. (f) Calculate Margin of Safety Ratio (%) for both years? (g) Calculate Sales Revenue to achieve after tax profit of Rs. 60 million