QUESTION NO. 02: Cost-Volume-Profit Analysis (10 Marks) Zulfiqar & Co. produces minerd water. Based on the projected annual sales of 20,000 bottles of mineral water, cost studies have produced the estimates that the material Rs. 193, 600, labour 80, 000, manufacturing overheads Rs.70,000 whereas the administrative overheads Rs.20,000. The distribution of the cost in terms of variable and fixed is as follows: Distribution of Cost (Percentage) Variable Cost Fixed Cost 100 70 30 Material Labor Page 2 of 4 Manufacturing Overhead Administration 64 30 36 70 The production will be sold through deders who would receive a commission of 6% of sale price. Required: 0 Compute the sale price per bottle which will enable management to realize a profit of 12 percent of sales. Calculate the break-even point in units and rupees if sale price is fixed at Rs. 11 per bottle