Question 5 An Indian soft drink company is planning to establish a subsidiary company in Bhutan to produce mineral water. Based on the estimated annual sales of 40,000 bottles of the mineral water, cost studies produced the following estimates for the Bhutanese subsidiary: Total annual costs Percent of Total Annual Cost which is Variable Material 2,10,000 100% Labour 1,50,000 80% Factory Overheads 92,000 60% Administration Expenses 40,000 35% The Bhutanese production will be sold by manufacturer's representatives who will receive a commission of 8% of the sale price. No portion of the Indian office expenses is to be allocated to the Bhutanese subsidiary. You are required to (0) Compute the sale price per bottle to enable the management to realize an estimated 10% profit on sale proceeds in Bhutan. Calculate the break-even point in Ngultrum sales as also in number of bottles for the Bhutanese subsidiary on the assumption that the sale price is 14 per bottle