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Question - Habesha cement factory plc has set highly stretched plan for maximizing profit of the company and market coverage for 2015 to sell 500,000 quintal cement at unit cost of 200birr per quintal and variable cost at birr 160per quintal to sell 25% profit markup of the market with investment cost of10,000 birr.
The marketing department of the company had conducted a survey that indicates both its past sales data and its future sales estimation, therefore based on the survey, The company approved that the company had registered sales amount of birr 15,000,000 by a budget year 2001 E.C which was growing by 5% each year up to budget year 2005 E.C for the years conscutive years.
Based on the above information answer the following questions
1. Determine the total fixed cost, total profit and selling price of the company.
2. Prepare financial report of the company for the budget year 2001 - 2005 E.C.
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