Problem 7 British Cadbury Soft Drink Co. is planning to establish a subsidiary company in Kiniya to produce Mineral Water. Based on the esmated annual sales of 40,000 bottles of the mineral water, cost studies produced the following estimates for the Kiniyan Per cent of total annual cost that is variable Total annual cost $ Material 1,93,600 100 Labour 90,000 70 Overheads-Factory 80,000 641 30,000 30 -- Administration The Kiniya production will be sold by manufacturer's representaves who will receive a commission of 8% of the sale price. No portion of the British Office expenses is to be allowed to the Indian subsidiary You are required to: Compute the sale price per bottle to enable management to realize an estimated 10% profit on sale proceeds in kiniya; and Calculate the break-even point in $ for the Kiniyan subsidiary on the assumption that the sale price is $11 per bottle