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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

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?

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