Suman Ltd manufactured and sold 1000 electric irons last year at a price of Rs 800 each. The cost structure of electric iron is as follows:

Particulars

Per unit (Rs)

Materials

200

Labour

100

Variable overheads

50

Total marginal cost

350

Factory overheads (fixed)

200

Total Cost

550

Profit

250

Sales

800

Due to heavy competition, price has to be reduced to Rs 750 as suggested by the marketing manager. Is it a good idea?

Assuming no change in costs, calculate the number of electrical irons that would have to be sold at the new price to ensure the same amount of profit as that of the last year.