Problem Statement: An ABC company is evaluating a proposal for investment on product. The different cost incurred if investment is done is as follows.

The initial cost of design is OMR 1500 and setting up facility is OMR 35000. The cost of raw material and packing cost for each unit is OMR 25 and OMR 5, respectively. A 15 units of the product can be painted using a paint box of OMR 50. The labour cost for each unit is OMR 5 and rent of the land is OMR 2500.

Answer the following if the selling price for each product is OMR 60.

i. What should be the minimum quantity of product has to be sold to make profit.

ii.What profit the company generates if its sales 1200, 1500, 1800, 2100 and 2500 units?

iii.How many minimum quantities of units company needs to sell to generate profit if cost of design is reduced by 25% when other related data remains constant?

iv.How many minimum quantities of units company needs to sell to generate profit if selling price is reduced by 12% when other related data remains constant?

v.As an industrial Engineer which parameter values you will modify to reduce break even quantity. Justify your answer. (1 mark)