(a) Pay Salesman a commission of 10% of sales and thus increase sales to achieve break –even point. [5 marks] (b) Reduce selling price by 10%, which it is estimated would increase sales volume by 30% [3 marks] (c) Increase direct wages rates from K4 to K5 per hour, as part of a productivity/ pay deal. It is hoped that this would increase production and sales by 20%, but advertising costs would increase by K50,000. (d) Increase sales by additional advertising of K30,000, with an increased selling price of 20%, setting a profit margin of 10%



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