From the data provided, calculate the P/V Ratio and the Break-Even Point in units and sales revenue.

$$\text{Contribution Margin per unit} = \text{Selling Price per unit} - \text{Variable Cost per unit}$$ $$\text{Contribution Margin per unit} = \text{Ksh } 200 - \text{Ksh } 80 = \text{Ksh } 120$$

$$\text{P/V Ratio} = \frac{\text{Contribution Margin per unit}}{\text{Selling Price per unit}} \times 100\%$$ $$\text{P/V Ratio} = \frac{\text{Ksh } 120}{\text{Ksh } 200} \times 100\%$$ $$\text{P/V Ratio} = 0.60 \times 100\% = 60\%$$

The P/V Ratio is also known as the Contribution Margin Ratio.

$$\boxed{\text{P/V Ratio} = 60\%}$$

2) Calculate the Break-Even Point.

$$\text{Break-Even Point (Units)} = \frac{\text{Fixed Costs}}{\text{Contribution Margin per unit}}$$ $$\text{Break-Even Point (Units)} = \frac{\text{Ksh } 150,000}{\text{Ksh } 120 \text{ per unit}}$$ $$\text{Break-Even Point (Units)} = 1,250 \text{ units}$$

$$\text{Break-Even Point (Sales Revenue)} = \frac{\text{Fixed Costs}}{\text{P/V Ratio}}$$ $$\text{Break-Even Point (Sales Revenue)} = \frac{\text{Ksh } 150,000}{0.60}$$ $$\text{Break-Even Point (Sales Revenue)} = \text{Ksh } 250,000$$ $$\boxed{\text{Break-Even Point} = 1,250 \text{ units or Ksh } 250,000}$$

3) If the selling price is reduced to Ksh 100, calculate the New Break-Even Point.

New Selling Price per unit = Ksh 100
Variable Cost per unit = Ksh 80

$$\text{New Contribution Margin per unit} = \text{New Selling Price per unit} - \text{Variable Cost per unit}$$ $$\text{New Contribution Margin per unit} = \text{Ksh } 100 - \text{Ksh } 80 = \text{Ksh } 20$$

Fixed Costs = Ksh 150,000

$$\text{New Break-Even Point (Units)} = \frac{\text{Fixed Costs}}{\text{New Contribution Margin per unit}}$$ $$\text{New Break-Even Point (Units)} = \frac{\text{Ksh } 150,000}{\text{Ksh } 20 \text{ per unit}}$$ $$\text{New Break-Even Point (Units)} = 7,500 \text{ units}$$

$$\text{New P/V Ratio} = \frac{\text{New Contribution Margin per unit}}{\text{New Selling Price per unit}} \times 100\%$$ $$\text{New P/V Ratio} = \frac{\text{Ksh } 20}{\text{Ksh } 100} \times 100\% = 20\%$$

$$\text{New Break-Even Point (Sales Revenue)} = \frac{\text{Fixed Costs}}{\text{New P/V Ratio}}$$ $$\text{New Break-Even Point (Sales Revenue)} = \frac{\text{Ksh } 150,000}{0.20}$$ $$\text{New Break-Even Point (Sales Revenue)} = \text{Ksh } 750,000$$ $$\boxed{\text{New Break-Even Point} = 7,500 \text{ units or Ksh } 750,000}$$