Am Berhad is a company producing tables. After discussing with the marketing manager, the production manager planning to focus on producing a product named AFI. The marketing manager is observing on two states, Selangor and Pahang, the sales at both states is expected to be RM500,000 an RM810,000 respectively. Information related to the cost per unit of the production for both states are as follows: SELANGOR (RM) PAHANG (RM) Selling price Direct material Direct labour 135 45 15 100 40 10 Overhead 20 30 50% of the overhead in SELANGOR and PAHANG are fixed. 1.Classify the cost incurred into variable cost per unit and total fixed cost for both states.
Am Berhad is a company producing tables. After discussing with the marketing manager, the production manager planning to focus on producing a product named AFI. The marketing manager is observing on two states, Selangor and Pahang, the sales at both states is expected to be RM500,000 an RM810,000 respectively. Information related to the cost per unit of the production for both states are as follows: SELANGOR (RM) PAHANG (RM) Selling price Direct material Direct labour 135 45 15 100 40 10 Overhead 20 30 50% of the overhead in SELANGOR and PAHANG are fixed. 1.Classify the cost incurred into variable cost per unit and total fixed cost for both states.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Am Berhad is a company producing tables. After discussing with the marketing manager, the
production manager planning to focus on producing a product named AFI. The marketing
manager is observing on two states, Selangor and Pahang, the sales at both states is
expected to be RM500,000 an RM810,000 respectively. Information related to the cost per
unit of the production for both states are as follows:
SELANGOR (RM)
PAHANG (RM)
Selling price
Direct material
Direct labour
135
45
15
100
40
10
Overhead
20
30
50% of the overhead in SELANGOR and PAHANG are fixed.
1.Classify the cost incurred into variable cost per unit and total fixed cost for both states.
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Calculate the followings and show all your workings.
- The break-even point (in unit and sales value) for both states.
- The margin of safety (in unit) for both states.
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