Two Left Feet Ltd produces and sells a single product, the Claud at Shs.500. The Unit manufacturing cost of Claud is Shs.200 and total fixed manufacturing costs equal to Shs.300,000. The company incurs selling and administration costs equal to 2% of sales revenue and fixed selling cost of Shs. 100,000 per annum. Required: a) Determine the break-even sales in units and in shillings
b) Determine the units that should be sold to earn a net income of Shs.200,000
c) If the company was in the 30% tax bracket, how many units will have to be produced to earn the Shs.200.000 d) Management is considering a policy which would increase fixed manufacturing costs by shs. 200,000 but cut down on the variable manufacturing cost by 20%
(i). What is the break-even point in units and in revenue under this policy?

(ii). Assuming the 30% tax bracket, how many units will have to be produced to earn the target profit of Shs.200.000 under this new policy?

e) At what level of sales level will management be indifferent between the two policies?
f) Assuming that the maximum possible demand is 6,000 units, determine the range of sales which will be financially beneficial in each policy. (20 marks)
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Gross Domestic Products (GDP) is a measure of the total market value of all finished goods and services made within a country during a specific period.

Explanation:

GDP is an acronym for Gross Domestic Products (GDP) and it can be defined as a measure of the total market value of all finished goods and services made within a country during a specific period.

Simply stated, GDP is a measure of the total income of all individuals in an economy and the total expenses incurred on the economy's output of goods and services in a particular country.

On a related note, Gross Domestic Products (GDP) is a measure of the production levels of any nation.

Basically, the four (4) major expenditure categories of GDP are;

I. Consumption (C).

II. Investment (I).

III. Government purchases (G).

IV. Net exports (N).

In conclusion, GDP is a measure of the total amount of finished goods and services produced by a country.

steering wheels are always situated on the left side of the car.

always drive on the right side of the road.

white lines separate lanes of traffic traveling the same direction.

hashed or broken lines means you may change lanes when it is safe.

solid white lines mean stay in your lane.

yellow lines separate traffic moving in opposing directions.

hashed or broken yellow lines mean you can carefully pass, paying attention to oncoming traffic.

never cross a solid yellow line (or double yellow line).

when turning left at an intersection, pass in front of any cars that are turning left from the opposing direction (do not try to pass behind them).

use the left lane to pass other cars traveling your direction.

do not pass in the right lane unless absolutely necessary.

if you are driving in the far left hand lane and someone would like to pass you, move over to the right lane when it is safe to do so and allow them to pass.

you must always yield to pedestrians.

come to a complete stop whenever you see pedestrians trying to cross the street.

never pass a school bus if it has flashing red lights. wait until the lights have stopped.

be aware of bicyclists. often they share the road with cars and are supposed to also follow general traffic laws.

be particularly careful about driving in cities with bike lanes -- always check before turning that a bike is not coming.

it is mandatory to pull over or stop at an intersection to allow an emergency vehicle to pass you if you see one traveling with lights flashing and/or a siren running.

do not overuse your car horn. horns are used almost exclusively for emergency situations or for when you feel unsafe.

explanation: