Question four

The Manhasset Machine Tool Corporation manufactures a variety of machine tools. The following are taken from the budget to make Cylinder heads for gear box

Sales $(10\mathrm{.}000$ units$)$

Variable costs$(10,000$ units$)$

Fixed costs

$shs200,000,000$

$120,000,000$

$90,000,000$

Required

$($a$)$ What is the break$-$even point in units

$($b$)$ What sales volume would be necessary to earn an after$-$tax net income of shs $16,000,000$ if the income tax rate is $40$ percent?

$($c$)$ What sales volume would be necessary to earn a profit before tax equal to $10$ percent of sales?

$($d$)$ What effect would a $10$ percent price increase have on the break$-$even point?

$($e$)$ What are the principal assumptions underlying the break$-$even and cost$-$volume$-$profit calculations made above?

$[$Total $20$ Marks$)$

Question five

a$)$ CRDB Bank Plc $($The Bank$)$ is a Public Company limited by shares which was incorporated in the United Republic of Tanzania in $1996$ under the Companies Act, CAP $212$ Act No$.12$ and was listed on the Dar es Salaam Stock exchange $($DSE$)$ on $17$th June $2009.$ Since then, the market price of the shares has been increasing. Due to this reason, illiterate investors approached you to discuss how the following investor's' ratios can be calculated for them to make investment decision.

$($i$)$ Earnings Per Share

$($ii$)$ Dividend per Share

$($iii$)$Price$/$ Earning Ratio

$[$Total $10$ Marks$]$

b$)$ CBC Lid has the following information from the year $2013$ to $2017$

$\backslash$table$[[$Financial Year,$2013,2014,2015,2016,2017],[,84,3,95,64,128,97,69\mathrm{.}57,36\mathrm{.}2],[$Net income $($In Million$),\frac{78}{203,20},\frac{5}{255\mathrm{.}25},\frac{8}{121\mathrm{.}17},\frac{7}{3839\mathrm{.}69},\frac{12}{414,39}$