XYZ Company manufactures a product called "PERMA".

Pertinent cost and revenue data relating to the

manufacture of this product is given below:

Shs

Selling price per unit

66

Variable production cost per unit

44

Variable selling cost per unit

4

Fixed production cost (total)

Shs.200,000

Fixed selling and administrative cost (total)

Shs.99,000

Required

a)

Calculate the break-even sales level in shillings;

b)

Suppose the company desires to make a profit of shs.195,000, what should be the output in

units?