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A company manufactures a product and currently utilizing 8 0 % capacity with a turnover of 3 2 , 0 0 0 units at a
A company manufactures a product and currently utilizing capacity with a turnover of units at a selling price of shs per unit. The variable cost of the product is kshs per unit. Fixed cost amounts to kshs up to of level of output and there will be an additional cost of a supervisor amounting to kshs beyond that level.
Calculate:
i Activity level at breakeven point Marks
ii Number of units to be sold to earn a net income of of sales Marks
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