6) A company makes a single product with a sales price of TZS 10,000 and a marginal cost of TZS 6,000. Fixed costs are TZS 60,000,000 p.a Required: a) Number of units to break even; b) Sales at Break-Even point; c) C/S ratio 7 PROJECT FINANCIAL MANAGEMENT AND CONTROL PMG 09202 d) What number of units will need to be sold to achieve a profit of TZS 20,000,000 p.a e) What level of sales will achieve a profit of TZS 20,000,000 pa 1) If the taxation rate is 40%, how many units will need to be sold to make a profit after tax of TZS 20,000,000 p.a? g) Because of increasing costs, the marginal cost is expected to rise to TZS 6,500 per unit and fixed costs to TZS 70,000,000p.a. If the selling price cannot be increased, what will be the number of units required to maintain a profit of TZS 20,000,000? [ignore tax] 7) A manufacturer incurred the following costs in a period for his sole product: Labour [25% variable] Materials [100% variable] Selling costs [10% variable] TZS 8,000,000 12,000,000 2,000,000 7,000,000 29,000,000 Other costs [fixed] Total Costs A normal period's sales are 500 units at TZS 70,000 each, but up to 650 units could be made in a period. Various alternatives are being considered: i. Reduce the price to TZS 63,000 each and sell all that could be made; ii. Increase the price to TZS 80,000 each at which price sales would be 400 units; iii. Keep the present plan. What is the most profitable plan? What are the C/S ratios? What is the break-even point for each alternative? 8) The following costs and sales of a manufacturing company for the first half and second half of 2019-2020 are given: First half second half TZS TZS Sales 2,400,000 3,000,000 Total costs 2,180,000 2,600,000 You are required to determine: Contribution/sales ratio of the firm [P/V ratio]