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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In ledland, unemployed adults receive government assistance. to reduce unemployment, the government proposes to supplement the income of those who accept jobs that pay less than government assistance, thus enabling employers to hire workers cheaply. however, the supplement will not raise any worker's income above what government assistance would provide if he or she were not gainfully employed. therefore, unemployed people will have no financial incentive to accept jobs that would entitle them to the supplement.which of the following, if true about ledland, most seriously weakens the argument of the editorial? (a) the government collects no taxes on assistance it provides to unemployed individuals and their families.(b) neighboring countries with laws that mandate the minimum wage an employer must pay an employee have higher unemployment rates than ledland currently has.(c) people who are employed and look for a new job tend to get higher-paying jobs than job seekers who are unemployed.(d) the yearly amount unemployed people receive from government assistance is less than the yearly income that the government defines as the poverty level.(e) people sometimes accept jobs that pay relatively little simply because they enjoy the work.