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Question TWO: Prof. Lucia Mpaloko is the Chief Executive Officer of LuMpa Farms Inc. while Mr. Ziparia is the Chief Finance Officer of LuMpa FARMS

Question TWO: Prof. Lucia Mpaloko is the Chief Executive Officer of LuMpa Farms Inc. while Mr. Ziparia is the Chief Finance Officer of LuMpa FARMS Inc. Mr Ziparia was requested by the Board of Directors to extract some selected information from the books of Accounts of LuMpa Farms Inc. The reason being that the Board of Directors needed to know the Break-Even point of the various products they produced i.e. product (A, B, C , D and E). The following information relates to sales mix of product A, B, C, D and E for LuMpa Farms Inc. PRODUCT SALES PRICE/UNIT VARIABLE COST/UNIT % SALES MIX A K1,500 K900 20 B K2,350 K1,300 35 C K2,390 K1,900 25 D K1,400 K1,050 16 E K1,560 K980 45 TOTAL FIXED COST= K105,000 Required: Using the information above, you are required to calculate the break-even point expressed in both units and value (kwacha). You are expected to ensure that you clearly show and explain the stages involved-

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