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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 Overhead 100 135 45 40 10 15 20 30 50% of the overhead in SELANGOR and PAHANG are fixed. 2.Calculate the followings and show all your workings. i. The break-even point (in unit and sales value) for both states. ii. The margin of safety (in unit) for both states. ii. Advice to the management in which state should the company sell AFI.

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 Overhead 100 135 45 40 10 15 20 30 50% of the overhead in SELANGOR and PAHANG are fixed. 2.Calculate the followings and show all your workings. i. The break-even point (in unit and sales value) for both states. ii. The margin of safety (in unit) for both states. ii. Advice to the management in which state should the company sell AFI.

FINANCIAL ACCOUNTING
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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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 Overhead 100 135 45 40 10 15 20 30 50% of the overhead in SELANGOR and PAHANG are fixed. 2.Calculate the followings and show all your workings. i. The break-even point (in unit and sales value) for both states. ii. The margin of safety (in unit) for both states. ii. Advice to the management in which state should the company sell AFI.
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 Overhead 100 135 45 40 10 15 20 30 50% of the overhead in SELANGOR and PAHANG are fixed. 2.Calculate the followings and show all your workings. i. The break-even point (in unit and sales value) for both states. ii. The margin of safety (in unit) for both states. ii. Advice to the management in which state should the company sell AFI.
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