Yakubu investors has an investment of sh$.200,000$ in his firm. The company want an

investment return of $15\%$ on the investment. From the analysis of relevant cost figures,

Yakubu finds that his variable cost of operation is $60\%$ of the sales. The fixed costs were sh$.$

$80,000$ per year. With suitable computations provide answers to the following questions:Yakubu investors has an investment of sh$.200,000$ in his firm. The company want an

investment return of $15\%$ on the investment. From the analysis of relevant cost figures,

Yakubu finds that his variable cost of operation is $60\%$ of the sales. The fixed costs were sh$.$

$80,000$ per year. With suitable computations provide answers to the following questions:

i$)$ What sales value must the company obtain to get $15\%$ retum on the investment.

$(5$ marks$)$

ii$)$ What sales value must the company obtain to get $15\%$ retum on the investment.

$(2$ marks$)$

iii$)$ Yakubu estimates that even if the business was closed he would still incur an amount

of sh$.25,000$ as expense. So at what point of sales would Yakubu be better off by

closing down his business.

$(3$ marks$)$