Problem
Unit selling price 10 kes, unit variable cost 6 kes, fixed costs 300,000 kes, target profit 200,000 kes.
a) State any four assumptions about cost profit volume analysis and why they are important.
b) Compute the break even point for the company if the company has to make a profit of 220,000.
c) Graphically show the number of units to enable such profit.