XYZ Led. carries on its business in Nairobi. The company has been reporting its profits QUESTION THREE using absorption costing system. During the financial year ended 30 September 2015 , the following summary statement was provided: Sales (4,000 units) Shs. 5,000,000 Currently the company is implementing strategies to improve its profitability, which are to be implemented in two phases; A and B. Each phase will cover a period of six months. The expected production and sales in units for each of the phases are shown below: fixd costs are expected to increase by 20% whille the variable costs per unit will remain hey were in the previous period. The selling price per unit will be Shs. 1,500