2. The following figures relate to AB Mills Ltd:

For the year 2015 - 2016Ksh.

Fixed Factory Overhead400, 000

Fixed Selling and Distribution Overheads200, 000

Variable Cost per unit12

Selling Price per unit20

Required:

Calculate the following:

i) Break- even point in units.(2 marks)

ii) Units to be sold to earn a target net income of Ksh5, 000 per month during a year.

(2 marks)

iii) Number of units to earn a net income of 25% on cost.(2 marks)

iv) Selling price per unit if break - even point is to be brought down by 15, 000 units.

(2 marks)

v) Selling price to earn a profit of 20% on sales by selling only 500, 000 units.(2 marks)