Asian Industries Ltd. specialises in the manufacture of small capacity motors. The cost structure of a motor is as under: Material, `50; Labour, `80; Variable overheads, 75 per cent of labour cost....

Asian Industries Ltd. specialises in the manufacture of small capacity motors. The cost structure of a motor is as under: Material, `50; Labour, `80; Variable overheads, 75 per cent of labour cost. Fixed overheads of the company amount to `2.40 lakh per annum. The sale price of the motor is `230 each.

(a) Determine the number of motors that have to be manufactured and sold in a year in order to break-even.

(b) How many motors have to be made and sold to make a profit of `1 lakh per year?

(c) If the sale price is reduced by `15 each, how many motors have to be sold to break-even?