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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)

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