(b) EPZ a processing company in Kenya is planning on producing and selling three products: A, B, C. ETZ sales manager es

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B Epz A Processing Company In Kenya Is Planning On Producing And Selling Three Products A B C Etz Sales Manager Es 1 (83.19 KiB) Viewed 43 times

(b) EPZ a processing company in Kenya is planning on producing and selling three products: A, B, C. ETZ sales manager estimates that the three products will sell in à mix such that three units of product B and 5 units of Product C will be sold for each 2 units sold of Product A. The total fixed costs are estimated at Kshs. 3.7m. The total contributions (Kshs) of products A, B and C are (85-50)X1, (80-40)X? and (95-67)X; where X, X, and X; are units of A, B and C produced and sold respectively. Required: Determine the number of units of each product that EPZ should produce and sell to break even. (6 Marks) On the study of costs and revenue for production of University of Nairobi branded biro pens, the following expressions were determined before production starts and a set up cost of Kshs. 1,500'existed. AR=600 -0.54 MC = 140-89 +0.1592 Where: AR=Average revenue(Kshs) MC=Marginal cost (Kshs) and q is number of biro pens 4 (0)