(a)Calculate the following:i.Break-even point in packets and value.ii.Total net profit for the yeariii.Margin of safety in packets and value. Kopi Cikgu Sdn. Bhd. is the exclusive wholesale distributor of the "Golden RoastCoffee" manufactured in one of the industrial areas in Malacca. The coffee issold in individual packets of 300gram at RM6 each. In developing thecompany's financial strategy for the year 2021, the company's president hasaccumulated all data on projected operation as follows:Expected sales volume300,000 packets per annum|Variable cost:RM2 per packetRM1 per packetRMO.50 per packetRM150,000 per annumRM90,000 per annumCost of coffeeCost of labourSelling and distributionAdministration expensesOther overhead expensesAdditional information:• 20% of the administration expenses are variable costs and remaining arefixed costs.• 60% of the overhead expenses are fixed costs and the remaining arevariable costs.Required:

Expected total Sales = 300000 Packets * RM 6 = RM 1800000. Variable Cost :- Cost of Coffee = 300000…

Answered: (a) Calculate the following: i.…

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

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

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

Kopi Cikgu Sdn. Bhd. is the exclusive wholesale distributor of the "Golden Roast
Coffee" manufactured in one of the industrial areas in Malacca. The coffee is
sold in individual packets of 300gram at RM6 each. In developing the
company's financial strategy for the year 2021, the company's president has
accumulated all data on projected operation as follows:
Expected sales volume
300,000 packets per annum
|Variable cost:
RM2 per packet
RM1 per packet
RMO.50 per packet
RM150,000 per annum
RM90,000 per annum
Cost of coffee
Cost of labour
Selling and distribution
Administration expenses
Other overhead expenses
Additional information:
• 20% of the administration expenses are variable costs and remaining are
fixed costs.
• 60% of the overhead expenses are fixed costs and the remaining are
variable costs.
Required:

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