Kiko Manufacturing Ltd. wants to take a decision of introducing a new soap Kikope. The cost for introducing Kikope (Initial advertising, promotion and fixed cost...

      

Kiko Manufacturing Ltd. wants to take a decision of introducing a new soap Kikope. The cost for introducing Kikope (Initial advertising, promotion and fixed cost for one year of production) is estimated at Ksh.30,000. The variable cost per bar of soap is Ksh.30 and the expected selling price is Ksh.50.

Required:
Draw the cost, revenue and profit functions and from it:
i) Determine the break-even level of production.
ii) Determine the profit on the sale of 2,500 soap bars.

  

Answers


Wilfred
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Wilfykil answered the question on February 20, 2019 at 09:56


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