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2. The Asan Industries specialize in the manufacture small capacity motors. The cost structure of...

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Accounting

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2. The Asan Industries specialize in the manufacture small capacity motors. The cost structure of a motor is as under: Fixed overheads of the company amount to Rs 2.40 lakh per annum. The sales price of the motor is Rs 230 each. (a) Determine the number of motors that have to be manufactured and sold in a year in order to break even. (b) How many motors have to be made and sold to make a profit of Rs 1 lakh per year? (c) If the sales price is reduced by Rs 15 each, how many motors have to be sold to break even

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