YETA Ltd, a retailer, operating a number of stores, sells a large number of products which it classifies into three groups.Representative sales and cost data for the three product groups for a year is as follows:Product GroupABC Sales Revenue K128,000K440,000K340,000 Sales volume (in units of product) 100,00090,000200,000 Total Variable costs K64,000264,000K187,000

Total fixed costs are K340,000 per year.Floor space in each store is the key limiting factor for the business. The proportion of total floor space occupied by each product group in achieving the above sales is as follows:

Product Group A 16% Product Group B 50% Product Group C 34%Management intends to run an in-store promotion that will involve reducing all sales prices by 10%. As a result of this sales prices reduction, sales volume will increase by 30% in total.Required:(a) Calculate the weighted average contribution/sales (C/S) ratio to two (2) decimal places.[3 Marks]

(b) Calculate the break-even sales revenue (to nearest K) per year.[3 Marks]

(c) Determine the viability of proposed in-store promotion that would decrease all selling prices by 10% leading to an estimated 30% increase in total units sold.[5 Marks]

(d) Outline other factors that may influence the decision whether to run the proposed in-store promotion.[4 Marks]

(e) Determine the priority for the allocation of floor space in a new store between the three product groups on the basis of the above representative data and on the assumption that the retailer has the objective of maximizing total contribution.