Solution:
The Rs. 2 increase in contribution will decrease variable cost to Rs.7 – Rs.2 = Rs. 5 per unit.
The addition to fixed cost makes them Rs. 3.2 million + Rs.150,000 = Rs. 3,350,000.
The Rs. 2 increase in contribution will decrease variable cost to Rs.7 – Rs.2 = Rs. 5 per unit.
The addition to fixed cost makes them Rs. 3.2 million + Rs.150,000 = Rs. 3,350,000.