Question # 6

R Company has prepare the following projections for the coming year 2008:

Rs.

Sales 150,000

Variable cost 112,500

Contribution margin 37,500

Fixed cost 20,000

Net income 17,500

Required:

1. Compute the following:

1. Breakeven sales in rupees.
2. Margin of safety in rupee and in percentage.

2. A minimum unit to be sold to breakeven, if the sale price is Rs.15/unit.