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Selling price per unit is shs.66
Variable production cost per unit is shs. 44
Variable selling cost per unit is shs. 4
Fixed production cost (total) shs.200,000
Fixed selling and administrative cost (total) is shs. 99,000
Question a) Calculate the break even sale level in shillings
Question b) Suppose the company desires to make a profit of shs.195,000 what should be the output in units?
Question c) A new machine, which is more effecient is installed. This machine increases the fixed production cost by 20% but reduces the variable production cost per unit by 30% what is the new break-even point in sales revenue?
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