36. Caravan Company sold 1,00,000 units of its product at Rs 20 per unit. Variable costs are Rs 14 per unit

(manufacturing costs of Rs 11 and selling costs of Rs 3). Fixed costs are incurred uniformly throughout the year and amount to Rs 7,92,000 (manufacturing costs of Rs 5,00,000 and selling costs of Rs 2,92,000). There are no inventories at the beginning or at the end of the accounting period.

With this information, you are required to determine (i) break-even level for this product, (ii) the number of units that must be sold to earn an income of Rs 60,000 (before income-tax), (iii) the number of units that must be sold to earn an after-tax profit of Rs 90,000 (assuming a tax-rate of 50 per cent), and

(iv) the break-even point for this product after a 10 per cent increase in the wages and salaries (assuming wages and salaries are 50 per cent of variable costs and 20 per cent of fixed costs).