11:06 4 LTE +260 97 6068195 GBS550 20... Page 4 of 7 SECTION B - ANSWER ANY THREE [3] QUESTIONS QUESTION TWO A. Jack's Grocery is manufacturing a 'store brand' item that has a variable cost of $0.75 per unit and a selling price of $1.25 per unit. Fixed costs are $12,000. Current volume is 50,000 units. The firm can substantially improve product quality by adding a new piece equipment at an additional fixed cost of $5.000. Variable cost would increase to $1.00 but their volume should increase to 70.000 units due to the higher quality product. Should the company buy the new equipment? [6 Marks] B. What are the two breakeven points [both in dollars and in units) for the two processes considered in the problem in (a) above? [5 Marks] C. Develop a breakeven chart for the problem in (a) above. [8 Marks) D. Bweupe & Sons has fixed costs of K10,000 for the period. Their direct labour cost is K1.50 per unit and material input cost is KO.75 per unit. The selling price per unit is K4.00 i. Calculate the Break-Even point in units. [3 Marks) ii. What does it translate to in Kwacha? [3 Marks) [TOTAL: 25 MARKS] QUESTION THREE Leadership was in the past gauged on the basis of the Intelligent Quotient [10]. In recent times, research in leadership has shown that for an individual to be effective and efficient as a leader, one needs to have Emotional Intelligence. Discuss Emotional Intelligence in detail and how it fits in within the ambit of leadership today. [TOTAL: 25 MARKS] G