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The income statement of XYZ Company for the 2016 financial year was below expectations as shown below. Financial item Total in TZS Sales (40,000 units)

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The income statement of XYZ Company for the 2016 financial year was below expectations as shown below. Financial item Total in TZS Sales (40,000 units) Cost of raw materials Other variable costs Fixed factory overheads Fixed administrative overheads Sales commission (3% of sales value) Variable delivery costs Other fixed costs 400,000,000 80,000,000 100,000,000 160,000,000 30,000,000 12,000,000 20,000,000 30,000,000 What is the break-even point of the company? 9.1 9.2 The company proposes to reduce the selling price per unit by 10% and by doing so demand is expected to increase by 25%. What would be the profit or loss if this proposal is implemented

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