ues. No. 1: 'Patanjali Ayurved' manufactures a variety of products. It launched a new product, 'Cow Ghee'. The product was launched at the selling price of Rs.450 per Liter. The Ghee plant has an installed capacity of 14,000 Liters per month. For the new product, the cost accountant of the company has prepared the monthly budget, assuming 9,800 Liters as expected level of monthly sales. The budgeted cost statement is as follows: Particulars Variable Cost (Per Liter) Cow milk (6 Liters @ Rs. 35 per Liter) Direct labour (Paid based on piece-rate) Other Variable Overheads Total Fixed Costs (Per Month) Wages & Salaries Depreciation Other Fixed Costs (including interest) Amount () 210 30 70 315,000 380,000 250,000 Assume that the total investments made by the company for this product are Rs. 550,00,000. Also, 40% of the investments is financed through the Debt (in terms of Bank loans and Debentures). The interest rate charged for the Debt is 12% p.a. Required: (i) Determine the number of Liters of the 'Cow Ghee' to be sold by the company every month such that it does not suffer any losses. ii) How much profit before taxes per month the company will earn supposing that it would utilize 75% of its installed capacity? Also, ascertain the ROI (before taxes) earned by the company in this scenario. (ii) How many Liters of the Cow Ghee the company needs to sell in case it requires 24% ROI (before taxes) per annum? Further, in case the company has to operate beyond 75% of the installed capacity, it has to purchase the cow milk at a revised rate of Rs. 37.5 per Liter for the additional units produced