Carbondale Corporation is a manufacturer of converters sold on a private label basis to large discount chains. The company has capacity to produce 45,000 converters a year. Planned production for the...

Carbondale Corporation is a manufacturer of converters sold on a private label basis to large discount chains. The company has capacity to produce 45,000 converters a year. Planned production for the current year is 20,000 units and involves working the plant for a single shift. An analysis of the company’s cost records reveals the following information for the 20,000 units production level:

Variable manufacturing cost per unit:                                                Ksh 8

Variable Selling and Administration costs per unit:              Ksh2

Fixed manufacturing costs:                                                    Ksh60, 000

Fixed Selling and Administration costs:                                Ksh40, 000

Current selling price per unit:                                                 Ksh18

1.Determine the breakeven point in units and value

2.Plot the cost-volume-profit chart