Problem 1 A firm produces three products in a repetitive process facility. Product A sells for 250 SR; its unit variable cost is 75 SR. Product B sells for $20 SR: its unit variable cost is 350 SR. Product C sells for 130 SR; its unit variable cost is 55 SR. The firm has annual fixed costs of 1 million SR. The expected annual sales of the firm are 1,800 units of A, 1,600 units of B, and 1,700 units of C 1. Calculate the break-even point of the firm and its corresponding annual profit. 2. The firm has some idle capacity at these volumes, and chooses to cut the selling price of B from 820 SR to 650 SR, believing that its sales volume will rise from 1,600 units to 2,700 units. Compute the revised break-even point and its corresponding annual profit.