Corin Company manufactures a product called Corfic.Pertinent cost and revenue data relating to the manufacture of this product are given below:

Shs

Selling price per unit

66

Variable production cost per unit

44

Variable selling cost per unit

4

Fixed production cost (total)

Shs.200,000

Fixed selling and administrative cost (total)

Shs.99,000

Required:

a)Calculate the break-even sales level in shillings;(5 marks)

b)Suppose the company desires to make a profit of shs.195,000, what should be the output in units?(5 marks)

c)A new machine, which is more efficient, 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?(5 marks)