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The income statement for the year 2015 of a manufacturing based company is shown below....

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Accounting

The income statement for the year 2015 of a manufacturing based company is shown below.
Financial item Total in TZS
Net Sales (60,000 units)900,000,000
Cost of raw materials 200,000,000
Transportation costs of raw materials (charged per ton per km)40,000,000
Factory overheads 160,000,000
Administrative costs 33,000,000
Sales commission (3% of sales value)27,000,000
Distribution costs of finished products to customers( charged per ton per km)20,000,000
Other fixed costs 30,000,000
2.1 What is the break-even point of the company? [5 marks]
2.2 What profit was made by the company for the year 2015?[5 marks]
2.3 The company proposes to reduce the selling price per unit by 25% and by doing so demand is expected to increase by 30%. What would be the profit or loss if this proposal is implemented?

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