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Question 2 2.1 XYZ is a manufacturing Company that produces handbags using sisal material and leather materials. In year 2009 the Company realized sales
Question 2 2.1 XYZ is a manufacturing Company that produces handbags using sisal material and leather materials. In year 2009 the Company realized sales of Tshs 240M. Total variable costs and total fixed costs were Tshs 120M and 80M respectively. The unit price of handbags was Tshs 10,000. a) Determine the Break Even Point in terms of Sales and in terms of quantity of handbags. b) What strategies can be used to reduce the Break Even Point Sales? 2.2 To what extent are the profit volume analysis assumptions realistic?
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