Assume that you are planning to sell badges at the forthcoming Show at Sh.9 each. The badges cost Sh.5 to produce and you incur Sh.2000 to rent a booth in the Show ground.
Required:
a) Compute the breakeven point
b) Compute the margin of safety
c) Compute the number of units that must be sold to earn a before tax profit of 20%
d) Compute the number of units that must be sold to earn an after tax profit of Sh.1640, assuming that the tax rate is 30%.