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Jennga ltd makes a single product branded Z with a sales price of sh 100 and a variable cost of sh 60. Fixed cost are
- Jennga ltd makes a single product branded Z with a sales price of sh 100 and a variable cost of sh 60. Fixed cost are sh 600,000 per annum.
Required:
- Determine the breakeven point in shillings
- Assuming the taxation rate is 40%, determine the number of units to be sold to make a profit after tax of sh 200,000 per annum
- As a result of increasing costs, the variable cost is expected to rise to sh 65 per unit and fixed costs to sh 700,000 per annum.
- Assuming the selling price cannot be increased, determine the number of units required to maintain a profit of sh 200,000 per annum
(Ignore inflation)
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