Question: A firm sells a product whose data in two periods is as follows: Period I II Sales (Shs) 100000 150000 Variable cost (Shs) 60000

A firm sells a product whose data in two periods is as

follows: Period I II Sales (Shs) 100000 150000 Variable cost (Shs) 60000

A firm sells a product whose data in two periods is as follows: Period I II Sales (Shs) 100000 150000 Variable cost (Shs) 60000 90000 Profit (Shs) 20000 40000 Assume the price, unit variable cost, and fixed costs are the same in the two periods. Required: a) Determine the fixed cost b) Determine the breakeven sales revenue What is the profit when sales are sh. 600000 d) What is the sales required for a profit of sh. 110000 e) Determine the profit if variable cost incurred is Sh 300000

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