b) Super sales company is the exclusive distributor for a revolutionary book bag. The product sells for

Sh.60 per unit and has a contribution margin ratio of 40%. The company's fixed expenses are

Sh.360, 000 per year.

Required:

i. Compute the variable expenses per unit? (2 marks)

ii. Compute the break-even point? (4 marks)

iii. What sales level in units and in shillings is required to earn an annual profit of

Sh.90,000? (3 marks)