(a) Calculate the following:i. Break-even point in bottles and valueii.Total net profit for the yeariii. Margin of safety in bottles and valuePlease 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)

Working Notes Expenses Total Variable Fixed Remarks Expected sales volume 200000 Bottles…

Answered: alculate the following: i. Break-even…

alculate the following: i. Break-even point in bottles and value ii.Total net profit for the year iii. Margin of safety in bottles 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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