The following information is furnished to you with regard to a manufacturing concern for its operations during year 1.

It was estimated that, at the existing level of capacity utilisation, half the semi-variable overheads were in the nature of fixed overheads, whereas variable overheads accounted for the other half.
You are required to make necessary calculations to answer the following queries:
(i) At what level of output is the break-even point likely to be reached during the year 2, if there is no change in the price level?
(ii) What price per unit should be quoted in respect of a tender to be executed during year 3 if fixed costs are likely to go up by 10 per cent, variable costs by 20 per cent, and a 12 per cent profit margin is sought to be attained on the total cost?

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Direct material Direct labour Fixed overheads Semi-variable overheads Variable overheads Sales (at 800 per unit) 1,75,000 50,000 55,000 70,000 65,000 4,00,000