1. **Problem Statement:** Find the break-even point for the company given the original data and then determine the break-even points for the two scenarios: a) Fixed costs increase to Birr 2400 b) Price of each item is increased by Birr 61 2. **Formula for Break-even Point:** The break-even point in units is given by: $$\text{Break-even point} = \frac{\text{Fixed Costs}}{\text{Price per unit} - \text{Variable Cost per unit}}$$ 3. **Given Data:** - Fixed Costs (original) = Birr 1600 - Variable Cost per unit = Birr 25 - Price per unit (original) = Birr 45 4. **Calculate original break-even point:** $$\text{Break-even} = \frac{1600}{45 - 25} = \frac{1600}{20} = 80 \text{ units}$$ 5. **Scenario a) Fixed costs increase to Birr 2400:** $$\text{Break-even} = \frac{2400}{45 - 25} = \frac{2400}{20} = 120 \text{ units}$$ 6. **Scenario b) Price of each item increased by Birr 61:** New price per unit = $45 + 61 = 106$ $$\text{Break-even} = \frac{1600}{106 - 25} = \frac{1600}{81} \approx 19.75 \text{ units}$$ **Final answers:** - Original break-even point: 80 units - a) Break-even point with fixed costs 2400: 120 units - b) Break-even point with price increased by 61: approximately 20 units