(a)Prosperity Ltd produces calculators. Each calculator sells for Sh.800. The monthly fixed costs incurred by the division...
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Question:
(a)Prosperity Ltd produces calculators. Each calculator sells for Sh.800. The monthly fixed costs incurred by the division are Sh.2,800,000, and the variable cost of producing each diary is Sh.400.
(i)Find the break-even point for the division.[2 marks]
(ii)What should be the level of sales for the division to realize a 12% profit over the cost of making calculators?[1 mark]
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