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The Parrot Company sold 150,000 units @ Rs. 30 each, Variable cost is Rs. 20 (Manufacturing Rs. 15 & Marketing Rs. 5), Fixed Cost is
The Parrot Company sold 150,000 units @ Rs. 30 each, Variable cost
is Rs. 20 (Manufacturing Rs. 15 & Marketing Rs. 5), Fixed Cost is Rs. 1,200,000 annually which occurs evenly throughout the year (Manufacturing Rs. 800,000 & Marketing Rs. 400,000).
Required
i) Breakeven point in units
ii) Breakeven point in Rupees
iii) Number of units to be sold to earn profit before tax of Rs. 200,000
iv) Number of units to be sold to earn after tax profit of Rs. 100,000 if tax rate is 25%
v) The breakeven point in units if selling price is increased by Rs. 3 and variable cost
byRs. 2 per unit
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