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out of b. Kikopey Itd provides you with the following details about its product in ye Time left 0:57:23 Sales units 50000 Selling price units
out of b. Kikopey Itd provides you with the following details about its product in ye Time left 0:57:23 Sales units 50000 Selling price units Sh 250 Direct materials per unit Sh 80 Labour cost per unit Sh 50 Variable cost per unit Sh 20 Variable production costs per unit Sh 20 Selling costs per unit Sh 15 Other fixed costs Production 1000000 Selling 800000 Required a. Obtain the current profitability. (2 marks) b. Compute the Break units and value. (5 marks) C . Compute the margin of safety. (3 marks) d. If the firm desired to make of sh 4 million, compute the desired units to sell and sales value if: No tax existed. (3 marks) ii . A tax of 30% existed. (4 marks) e . If the management decided to give an extra sales commission of sh 5 per unit on every unit sold above the Break Even point, how many units would be sold to achieve an after tax profit of sh 5 million. Assume a tax sale of 30% (7 marks) Galaxy A12
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