ASSIGNMENT-1 A soft drink company is planning to produce mineral water. It is contemplating the purchase of plant with a capacity of 100,000 bottles a month. For the first year of operation the company expects to sell between 60,000 to 80,000 bottles. The budgeted costs at each of the two levels are as follows: Particulars Sh. 60,000 bottles 80,000 bottles Materials 360,000 480,000 Labour 200,000 260,000 Factory overheads 120,000 150,000 Administration expenses 100,000 110,000 Required: i) Compute the break-even point in shillings and units, if the company decides to fix the sale price at sh. 16 per bottle. (5 Marks) ii) Calculate the margin of safety from the lower boundary of the expected sales for the first year. (5 Marks) 3 iii) iv) Compute the profit that would result if 90,000 bottles are sold Compute the selling price that would give a profit of ksh 150,000 on sales of 90,000 (5 Marks) bottles. (5 Marks) (Total: 20 Units)