$2.$B An Indian soft drink company is planning to establish a subsidiary company in Bhutan to

produce mineral water. Based on the estimated annual sales of $40,000$ bottles of the mineral

water, cost studies produced the following estimates for the Bhutanese subsidiary:

commission of $8\%$ of the sale price. No portion of the Indian office expenses is to be allocated to

the Bhutanese subsidiary. You are required to:

I. Compute the sale price per bottle to enable the management to realize an estimated $10\%$ profit

on sale proceeds in Bhutan.

II$.$ Calculate the break$-$even point in rupee sales as also in number of bottles for the Bhutanese

subsidiary on the assumption that the sale price is Rs$.14$ per bottle.