Q.7 Answer the following: i) Following is the details of Alpha Inc. which sells a product Z. Selling Price - Rs. 200 per unit and variable cost is Rs. 100 per unit while the fixed cost is Rs. 500,000 . Due to current market conditions the variable cost increases by 10%. What should be the sales to earn a desired profit of 20% on sales? What will be the profit is sales is Rs. 12,00,000 (6 MARKS) ii) PQR Ltd. Produces a product. The margin of safety value is Rs. 4,00,000 and sales is Rs. 10,00,000 and fixed cost is Rs. 3,00,000. You are required to calculate the sales to earn a profit of 20% on sales. If the variable cost increases by 10%, calculate the new breakeven point value. (6 MARKS)