(a) Calculate the following:i. Break-even point in bottles and value (5 marks)ii. Total net profit for the year (6 marks)iii. Margin of safety in bottles and value (4 marks) Please provide a calculation for each of them. Kick Soda Sdn Bhd. is the authorized commercial producer of the "Rootbeer Soda"soft drink, which is made in one of Pahang's industrial zones. They sell soft drinks atKuantan's 250 schools. The management accountant has gathered all the data onpredicted operations in order to build the company's financial strategy for the year2021. The following is a breakdown of the costs:Expected sales volume200,000 bottles per annumVariable cost:Cost of materialCost of labourSelling and distributionAdministration expensesOther overhead expensesRM 2.15 per bottlesRM 0.60 per bottlesRM 0.25 per bottlesRM 120,000 per annumRM 50,000 per annumAdditional information:(i)The soft drink is sold at RM 5.00 per bottles.(ii)For the administration expenses, 60% in a fixed cost, while the remaining is avariable cost.For other overhead expenses, 20% is variable cost and the balance is fixedcost.(ii)

Here we have to use the concepts of break even point to determine the solutions of the three…

Answered: a) Calculate the following: i.…

a) Calculate the following: i. Break-even point in bottles and value (5 marks) ii. Total net profit for the year (6 marks) iii. Margin of safety in bottles and value (4 marks)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

100%

(a) Calculate the following:

i. Break-even point in bottles and value (5 marks)

ii. Total net profit for the year (6 marks)

iii. Margin of safety in bottles and value (4 marks)

Please provide a calculation for each of them.

Kick Soda Sdn Bhd. is the authorized commercial producer of the "Rootbeer Soda"
soft drink, which is made in one of Pahang's industrial zones. They sell soft drinks at
Kuantan's 250 schools. The management accountant has gathered all the data on
predicted operations in order to build the company's financial strategy for the year
2021. The following is a breakdown of the costs:
Expected sales volume
200,000 bottles per annum
Variable cost:
Cost of material
Cost of labour
Selling and distribution
Administration expenses
Other overhead expenses
RM 2.15 per bottles
RM 0.60 per bottles
RM 0.25 per bottles
RM 120,000 per annum
RM 50,000 per annum
Additional information:
(i)
The soft drink is sold at RM 5.00 per bottles.
(ii)
For the administration expenses, 60% in a fixed cost, while the remaining is a
variable cost.
For other overhead expenses, 20% is variable cost and the balance is fixed
cost.
(ii)

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