The Taylor Company Ltd. produces two products, A and B. Expected data for the first year of operations is:

Total fixed costs are expected to be ₹3,60,000 for the year.

You are required to answer the following:
(i) If sales, prices, and costs are as expected, what will be the operating income and the break-even volume in sales revenue?
(ii) Assume that prices and costs were as expected, but Taylor sold 12,000 units of A and 8,000 units of B. Recalculate the operating income and the break-even volume in sales revenue.

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Expected sales (units) Selling price Variable costs A B 8,000 12,000 45 55 30 30 35