TFP Ltd sells a kitchen utensil for Rs10000. The unit variable cost per utensil is Rs5000 plus a selling commission of 10%. Fixed manufacturing costs total Rs126,000 per month, while fixed selling and administrative costs total Rs250,000. The company is budgeting a sale of 5000 utensils for the current month.

1. What is the breakeven point in utensils?
2. How many utensils must be sold to earn a targeted profit of Rs750,000?
3. What additional Sales units will yield a profit of Rs800,000?
4. Calculate the new breakeven point if the sales price is reduced by 10%.
5. Calculate the margin of safety

PART B

For the next 6 months period, market research for Helix ltd has found that the selling price of a new protective cover for the utensils will be one and a half time of its cost per unit. The cost accountant has provided the following details with respect to overheads

Month	SD cards sold	Overheads (Rs)
January	3200	521,000
February	3100	509,000
March	3500	540,000
April	4100	557,000
May	2900	485,000
June	3800	547,000

The accountant is expecting that sales for July will reach 4500 covers. Calculate the selling price of one cover in July.