Please assist as the question is based on a case study

Chiyeyeye had created thriving business selling software for personal digital assistants and had captured 50 per cent of market share in its industry. Most Vice Presidents of sales would be thrilled at that accomplishment, Kabeshi was not. Fewer people were buying PDAs, and for Chiyeyeye, the trend became a harsh reality with a single call. Kabeshi was talking to a senior buyer for Best Buy. chiyeyeye's biggest retail partner. The best buy executive was calling to warn Kabeshi that over the next few months Best Buy was planning to radically decrease. orders for both PDs and associated software titles. "I got a sinking feeling in my stomach" Kabeshi says. As difficult as it was to hear, the news was not completely unexpected. Research firms had been reporting on the "maturity" PDA market for some time, saying that the devices soon would be obsolete, replaced by so-called small cell phones capable of both data and voice services. Revenue at Chiyeyeye had grown to ZMW 20 million as their popular titles enabled PDA users to play scrabble or consult the Oxford American dictionary. With only 20 employees in three offices, the company had become the dominant player in the market for PDA applications and enjoyed highprofile shelf space in retail chains such as Shoprite and Picknbuy. That dominant market share would be meaningless if PDAs wound up in the technology junk heap, and there were indications they may be there soon. In just one year, the world-wide PDA market had dipped 4.6%, according to the Garner Group, compared with an 18% jump for mobile voice-and-data handsets. If Chiyeyeye was to survive, the company would have to quickly break into market for mobile phone application. With that in mind, the CEO Komfwe Mumba convened a series of emergency "wireless summits" to address the issue. The company's executive gathered every month in the executive lounge at the airport, a point roughly equidistant from Chiyeyeye office and attempted to map a strategy for breaking into cell phone market. The barriers to entry were high, and Chiyeyeye had not established business relationships with mobile network operators. These entitled acted as the guardians of the menus or "decks" from which most mobile phone applications such as ring tones and games, are downloaded and purchased. Chiyeyeye did have longstanding ties with some of the country's largest retailers, but relatively few customers were publishing phone applications at these brick-and-mortar stores. The challenge was to convince customers to alter their purchasing behaviour. Kabeshi spoke with several retailers and knew that they were eager to begin carrying an all-in-one software and hardware bundle geared to neophyte smart phones users. It was, as Kabeshi said, a "dream product". Not everyone at Chiyeyeye agreed, however. Chiyeyeye's engineers balked at the notion, and there were also many operational ramifications. Entering this market would require Chiyeyeye to provide expensive 24/7 customer support services. In addition, the competition from larger and ealthier companies such as Microsoft and sony would be tough. The executives moved on to the other options. The annual fixed cost and expenses are estimated to be the following: (D) Total 1750 If Chiveyeye enterprise limited charges ZMW 100 per unit and the variable cost is ZMW 60 per nit (i) Calculate the break-even cost for Chiveyeve enterprise limited? (4 marks) (ii) Komfwe and his directors would like to buy a new machine. They have about ZMW 50,000 or so, but the machine costs ZMW 68500 . If they can earn 9 percent pa, how much do they have to invest today to buy the machine in two years? Do they have enough money? Assume the price does not change. ( 4 marks) b) Developing a business idea is everything in entrepreneurship and the only things. It is said that business ideas is the Hallmark and building blocks of an enterprise. Explain this statement giving reasons. ( 6 marksc) How Komfwe and his team did went about screening the business ideas in the market? ( 6 marks) Total marks 20