The following information is furnished to you with regard to a manufacturing concern for its operations during year 1. It was estimated that, at the existing level of capacity utilisation, half the...

The following information is furnished to you with regard to a manufacturing concern for its operations during year 1.

It was estimated that, at the existing level of capacity utilisation, half the semi-variable overheads were in the nature of fixed overheads, whereas variable overheads accounted for the other half. You are required to make necessary calculations to answer the following queries: (i) At what level of output is the break-even point likely to be reached during the year 2, if there is no change in the price level? (ii) What price per unit should be quoted in respect of a tender to be executed during year 3 if fixed costs are likely to go up by 10 per cent, variable costs by 20 per cent, and a 12 per cent profit margin is sought to be attained on the total cost?