Company can extend life cycle of the product

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Zambezi Milling is a timber processing and manufacturer of wooden crafts sold to international markets. The main TWO (02) products are coffee table and lazy chairs crafted from local trees. Products Unit price (ZMW) Variable Cost as percentage % of Selling Price Sales Mix% Coffee table 680 45 70 Lazy Chair 300 42.5 30 The company's budgeted Total Fixed Costs comprise: Administrative Cost ZMW 220,020 Factory overheads Cost ZMW 180, 000 Export licenses Costs ZMW 82,500 The Company falls in the 25% tax rate bracket after being offered some tax incentives but this has been zero rated by government in order to boost tourist sector due to impact of COVID-19. Explain in specific terms how the company can extend the life cycle of the product in order to maximize returns.

Reference no: EM133239612

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