AID16683 A company has annual fixed cost of Rs.1,68,00,000




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A company has annual fixed cost of Rs. 1,68,00,000. In the year 2013-14, sales amounted to Rs. 6,00,00,000 as
compared with Rs. 4,50,00,000 in the preceding year 2012-13. The profit in the year 2013-14 is Rs. 42,00,000
more than that in 2012-13. On the basis of the above information, answer the following:
(i) What is the break-even level of sales of the company?
(ii) Determine profit/loss on the forecast of a sales volume of Rs. 80,00,00,000
(iii) If there is a reduction in selling price by 10% in the financial year 2014-15 and company desires to
earn the same amount of profit as in 2013-14, what would be the required sales volume?

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