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C. The Cotton Candy Company had the following information available regarding last year's operations: Sales (100,000 units) K200,000; Variable costs 100,000; Contribution margin 100,000; Fixed

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C. The Cotton Candy Company had the following information available regarding last year's operations: Sales (100,000 units) K200,000; Variable costs 100,000; Contribution margin 100,000; Fixed costs 50,000; Net Income 50,000. If sales were to increase by 200 units calculate the effect of this increase on net income? [5 marks] D. Tren Tyre Ltd deals in tyres for which the following information is available: Average usage 140 tyres per day Minimum usage 90 tyres per day Maximum usage 175 tyres per day Lead time 10 - 16 days Required: Based on this information calculate a) Reorder level. b) Daily excess stock level. c) Safety stock level d) Reorder point [3 Marks] [1 Mark] [3 Marks] [3 Marks] [Total: 25 Marks]

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