Express link ltd. makes postage stamps for international communication. The office expenses are Sh. 540,000 per annum and each stamp costs Sh. 280 to produce....

Express link ltd. makes postage stamps for international communication. The office expenses are Sh. 540,000 per annum and each stamp costs Sh. 280 to produce. The company could produce and sell twice as many stamps next year as this year. This would reduce the unit cost of a stamp by Sh. 18. Each stamp sells for Sh. 360.
Required.
i) Number of postage stamps expected to be produced by Express link ltd. this year.
ii) The expected increase in profits next year.

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Kavungya answered the question on May 17, 2021 at 14:47

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