Answered step by step
Verified Expert Solution
Question
1 Approved Answer
One (Optional) The following data relate to Kenya Ltd for the year ended 31 December 2022: Sh '000' Sales Less: Total costs Net profit 24,000
One (Optional) The following data relate to Kenya Ltd for the year ended 31 December 2022: Sh '000' Sales Less: Total costs Net profit 24,000 20.000 4,000 Fixed costs account for 40% of the total costs. Required: i) (2 marks) (2 marks) ii) iii) Sales required to earn profit of Sh 6,000,000. (2 marks) iv) In order to increase sales, the management has the following two options: 1. To increase sales by 25% on incurring a sales promotion cost of Sh 2,500,000. Margin of safety. Break-even point in sales 2. To increase sales by 15% on reducing selling price by 5%. Advise the management on which option they should take. (O (4 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started