2. (a) Explain what is meant by Key factors. (5 marks) (b) In the year 2021, a company records revealed the following half year results: 2nd Half 1st Half Sh. Sales volume 810,000 Profit 21,600 Sh. 1,026,000 64, 800 Using the information provided compute the following assuming that fixed costs did not change in both periods. (a)Profit volume ratio (b) Fixed cost (c)Profit when sales is sh. 648,000 (d) Sales required to earn a profit of shs. 108,000 (4 marks) (4 marks) (3 marks) (6 marks) (e)Sales required retaining the profit of Sh. 108,000 when income tax is 40%. (3 marks) 3. The following data were obtained from the records of a firm producing a product which passes through three processes A, B and C. Process A B C Sh Sh Sh Sunday materials 1,500 1,500 1,500 Direct Labour 4,500 8,000 6,500 Direct expenses 1,000 1,000 1,503 10,000 units of material was introduced into process A at a cost of Sh.1.10. Process losses at Process A was 5% and at B 4%. The scrap for process A were sold at sh.0.25 per unit and that of B at sh.0.50 while at C sh 1.00 per unit. The overhead charges were 160% of direct labour. The final product was sold out sh. 10 per unit Required: show that process accounts. 4. (a) From the following details prepare absorption and varia (25 marks)