A milk processing cooperative produces processed milk from fresh milk supplied by small-holder farmers. It incurs overhead costs of K54,000 per month. Farmers supply fresh milk to the cooperative at K4.00 per litre and processed milk is sold at K10.00 per litre. Processing costs are estimated at K3.00 per litre. Assuming the processing efficiency to be 95%,

(a)determine the monthly volume of fresh milk required by this cooperative to breakeven [2 marks]

(b)(b) estimate the additional volume of milk required to make a net profit K90,000 for patronage refunds [2 marks]

(c)(c) if membership is 30 and one cow produces 15 litres of milk per day in rainy season months, what should be the minimum number of cows milked per day per farmer? [2 marks]

(d)explain the impact of falling milk output by 40% per cow in dry months on the breakeven volume and profit [2 marks]

(e) provide a management programme for managing the problem in (d) [2 marks]