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The annual fixed costs of a product are  known to be Rs.2$\times$105 and the annual net profit is Rs.4$\times$104; the average monthly sales being 820 units. A new design is contemplated involving an expenditure of preparations amounting to Rs.8$\times$104 to be returned in two years. It is expected that with new production methods the product to volume ratio may be increased by 5 percent. What would be the new annual sales figure for the new product so that

(i)     Same net profit is realized

(ii)    In addition to this profit a yield of 10 percent on the capital involved will be obtained.

 

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