Essien company Ltd operates and services photocopier machine located in UDS. The machines are rented from a wholesaler. The company also pays rental for the spaces used for its services. The following expenses and revenue relationships pertains to Essien company Ltd for 10 photocopiers machines which are rented at a flat rate per month plus GHS0.30 per copy made. The fixed monthly expenses are as follows;

Machines rentals (10 machines) 1300

Space rentals (10 locations) 400

Wages (operators) 500

Other fixed Cost 200

Total 2400

Other Data:

Per Copy

Selling price 0.30

Cost of paper, repair and rental charge/copy 0.18

Marginal contribution 0.12

Required:

(A) Compute the break even point in number of copies and GHS sales

(B) Compute the company net income if 70,000 copies were made

(C) Suppose the space rental were doubled the current figure, determine the break even in

number of copies and GHS sales.

(D) Refer to original data: Suppose the wholesaler increased the rental charge per copy from

0.02, compute the BEP in number of copies.

(E) How many copies are to be made in all to earn a profit of GHS600

(F) What should the selling price per copy to attain GHS1,200 profit making 70,000

copies at the same fixed and variable cost?