Question: The HASF Ink Ltd income statement for the preceding year is presented below except as noted the cost / revenue relationship for the coming year

The HASF Ink Ltd income statement for the preceding year is presented below except as noted the cost / revenue relationship for the coming year is expected to follow the same pattern as in the preceding year income statement for the year ending March 31 is as follow s

Sales (200,000 units @ 2.5 Each) Rs. 5, 00,000

Variable cost 3, 00,000

Contribution margin 2, 00,000

Less Fixed cost 100,000

Profit before tax 100,000

Less tax 35,000

Profit after tax 65,000

Required

The company management feels that it should earn at least Rs.10000 pre taxes per annum on the new investment what sales volume is required to enable the company to maintain existing profit.

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