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Calculate the break-even sales level in shillings

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Reference no: EM132524050

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

Question a) Calculate the break-even sales level in shillings;

Question b) Suppose the company desires to make a profit of shs.195,000, what should be the output in units?

Reference no: EM132524050

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