SK Corporation has provided the following miscellaneous information regarding the operations of financial year 2020;

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Sales 10,000,000

Direct materials used 4,000,000

Direct labour 1,500,000

Fixed manufacturing overheads 2,000,000

Fixed selling and administration expenses 1,000,000

Gross profit 2,000,000

Net loss 500,000

Required

Calculate:

1. Factory cost of goods sold (2 marks)
2. Variable factory overhead (4 marks)
3. Variable selling and administration expenses (4 marks)
4. Contribution margin in in shillings (3 marks)
5. Break-even point in shillings (3 marks)