5. A company producing a single product sells it at Rs 50 per unit. Unit...
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5. A company producing a single product sells it at Rs 50 per unit. Unit variable cost is Rs 35 and fixed cost amount to Rs 12 lakh per annum. With this data, you are required to calculate the following, treating each independent of the other: a) P/V ratio and break-even sales. b) New break-even sales if variable costs increase by Rs 3 per unit, without an increase in the selling price. (c) Increase in sales required if profits are to be increased by Rs 2.4 lakh. (d) Percentage increase/decrease in sales volume units to off-set the following situations: (i) An increase of Rs 3 in the variable cost per unit. (ii) A 10% increase in selling price without affecting existing profits quantum. (e) Quantum of advertisement expenditure permissible to increase sales by Rs 1.2 lakh without affecting existing profits quantum
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