Income Statement of a Manufacturing Company is as follows: Production and Sales Units: 30,000 Sales Revenue @ Rs 30 per unit Rs 900,000 Less: Variable Cost @ Rs 18 per unit Rs 540,000 Contribution…

Income Statement of a Manufacturing Company is as follows: Production and Sales Units: 30,000 Sales Revenue @ Rs 30 per unit Rs 900,000 Less: Variable Cost @ Rs 18 per unit Rs 540,000 Contribution Margin Rs 360,000 Less: Fixed Cost Rs 240,000 Net Income before Tax Rs 120,000 Required: i) Brake-even point in Rs ii) Break-even point in units iii) Sales to earn desired profit after tax of Rs 75,000 if tax rate is 25% iv) Profit when sales are Rs 1,000,000 v) Margin of safety if profit is Rs 150,000 vi) Margin of safety ratio if actual sales is Rs 750,000 vii) Break even ratio if actual sales is Rs 800,000