(b) Sales go well, but the buyer puts pressure on Kimberly-Clark to reduce its prices. In the following financial year Kimberly-Clark expects sales to reach 40,000, but at a price of RM 75 per hamper....

Extracted text: (b) Sales go well, but the buyer puts pressure on Kimberly-Clark to reduce its prices. In the following financial year Kimberly-Clark expects sales to reach 40,000, but at a price of RM 75 per hamper. Labor and materials costs, and bought-in items are expected to rise in price by 15%, but Kimberly-Clark is planning to cut its fixed costs by 10%. Calculate how these changes will affect Kimberly-Clark's (i) break-even quantity and (ii) profitability.