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XYZ is a manufacturing company that produces handbags using sisal material and leather materials. In the year 2009, the Company realized sales of $ 240,000.

XYZ is a manufacturing company that produces handbags using sisal material and leather materials. In the year 2009, the Company realized sales of $ 240,000. Total variable costs and total fixed costs were $120,000 and $ 80,000 respectively. The unit price of the handbags was Tshs $10.

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?

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