cost and management accounting

QUESTION TWOYETA Lid, a retailer, operating a number of stores, sells a large number of products which itclassifies into three groups.Representative sales and cost data for the three product groups for a year is as follows:Product GroupABCSales RevenueK128,000K440,000K340,000Sales volume (in units of product)100,00090,000200,000Total Variable costsK64,000264,000K187,000Total fixed costs are K340,000 per year.Floor space in each store is the key limiting factor for the business. The proportion of total floorspace occupied by each product group in achieving the above sales is as follows:Product Group A16%Product Group B50%Product Group C34%Management intends to run an in-store promotion that will involve reducing all sales prices by10%. As a result of this sales prices reduction, sales volume will increase by 30% in total.Required:(a) Calculate the weighted average contribution/sales (C/S) ratio to two (2) decimal places.[3 Marks](b) Calculate the break-even sales revenue (to nearest K) per year.[3 Marks](c) Determine the viability of proposed in-store promotion that would decrease all selling pricesby 10% leading to an estimated 30% increase in total units sold.[5 Marks](d) Outline other factors that may influence the decision whether to run the proposed in-storepromotion.[4 Marks](e) Determine the priority for the allocation of floor space in a new store between the three productgroups on the basis of the above representative data and on the assumption that the retailerhas the objective of maximizing total contribution.[5 Marks]: 20 MARKS]