Q.No.

1 Max Marks 10

The Global 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 & in Rupees.

ii) Number of units to be sold to earn profit before tax of Rs. 200,000.