SECTION C (10 MARKS) 1. (a) What is break-even point, explain your answer with a diagram (2 marks) (b) A product currently sells for $12 per unit. The variable costs are $4 per unit, and 10,000 units are sold annually and a profit of $30,000 is realized per year. A new design will increase the variable costs by %20 and Fixed Costs by %10 but sales will increase to 12,000 units per year () At what selling price do we break even (4 marks) (ii) If the selling price is to be kept same ($12/unit) what will the annual profit be? (4 marks)