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Compute the breakeven point in sales units

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Techno Designs produces head covers for golf clubs. The comp xpects to generate a profit next year. It anticipates fixed manufacturing costs of Rs. 126,500 and fixed gen nd administrative expenses of Rs. 82,030 for the year. Variable manufacturing and selling costs per set ad covers will be Rs. 4.65 and Rs. 2.75, respectively. Each set will sell for Rs. 13.40.

i. Compute the breakeven point in sales units and in sales es.

ii. If the selling price is increased to Rs. 14 per unit and fixe neral and administrative expenses are cut by Rs. 33,465, what will the new breakeven point be in un nd in Rupees?

Reference no: EM13548099

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