he per tyre price structure of a cycle made by the Cycle Company Ltd. is as follows: This is based on the manufacture of 1 lakh tyres per annum. The company expects that due to competition, they will...

he per tyre price structure of a cycle made by the Cycle Company Ltd. is as follows:

This is based on the manufacture of 1 lakh tyres per annum. The company expects that due to competition, they will have to reduce selling price, but they want to keep the total profit intact. What level of production will have to be reached, that is, how many tyres will have to be made to get the same amount of profits, if: (a) the selling price is reduced by 10 per cent, (b) the selling price is reduced by 20 per cent?