Reference no: EM132633483

Founded in 1993, Lucky Cement Limited stands as the flagship company of Yunus Brothers Group (YBG). Lucky Cement is the largest producer of Cement in Pakistan with production capacity of 12.15 MTPA and remains one of the country's leading exporters of quality cement. Lucky Cement is listed on the Pakistan Stock Exchange (PSX). The Company has also issued Global Depository Receipts (GDRs), listed and traded on the Professional Securities Market of the London Stock Exchange and is the first Shariah Compliant Company of Pakistan certified by the SECP.

The Profit and Loss Statement of Lucky Cement Limited for last three years is presented below:
(In Rupees)

Based on the expected adverse PKR exchange rate parity and higher inflation rate the management of Lucky Cement Limited forecasted that the variable and fixed portion of all costs is expected to increase by 10% and 5% respectively in the following year (2020). However the management also expects that the initiatives taken by federal government to facilitate construction industry will increase the demand of cement in the country. The Sales volume of the company is expected to increase by 10%.

Problem 1: Find break-even point in units (tons) and in volume (sales) for 2019. The management of Lucky Cement Limited aims to achieve a target profit of Rs.10 billion for the year 2020, considering the management forecast regarding costs calculate sales target for 2020 both in units and in volume assuming 10% increase in the sales price for the year 2020 as compared to 2019?