Faith started a small business in January $2022$ for buying and selling a type of lesso.

She has been very busy servicing her orders that she has not had time to put her

books of accounts in order. She now requires some information to enable her secure

a loan from equity bank to expand her business. You peruse her books and find the

following information.

Financial year Profit Sales Variable cost

Jan$-$Dec $202225,00090,00060,000$

Jan$-$Dec $202345,000130,00090,000$

Assume that the unit price, unit variable cost and fixed cost are the same for the two

financial years.

Required

$($i$)$ Determine Faith$$s fixed costs. $(4$ marks$)$

$($ii$)$ Determine his breakeven sales revenue. $(3$ marks$)$

$($iii$)$ What profit will Faith make if her sales are sh$.400,000?(2$ marks$)$

$($iv$)$ Assuming Faith wants to make a profit of sh$.180,000,$ what sales will she need

to make? $(2$ marks$)$

$($v$)$ Determine the profit Faith will make if she incurs variable costs totaling sh$.$

$230,000.(3$ marks