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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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Question 4 NUR Berhad is a 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: company producing tables. After SELANGOR (RM) PAHANG (RM) Selling price 100 135 Direct material 40 45 Direct labour 10 15 Overhead 20 30 50% of the overhead in SELANGOR and PAHANG are fixed. Required: (Each question is to be treated independently) c. Marketing manager suggested the company should sell AFI in both states as he is convinced the market would be good. However, the direct material cost will increase by 10%. Advice the management on how many additional units to be sold for both states, assuming other information remains unchanged and NUR Berhad would like to maintain its annual profit. (Calculate to the nearest unit).
Transcribed Image Text:Question 4 NUR Berhad is a 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: company producing tables. After SELANGOR (RM) PAHANG (RM) Selling price 100 135 Direct material 40 45 Direct labour 10 15 Overhead 20 30 50% of the overhead in SELANGOR and PAHANG are fixed. Required: (Each question is to be treated independently) c. Marketing manager suggested the company should sell AFI in both states as he is convinced the market would be good. However, the direct material cost will increase by 10%. Advice the management on how many additional units to be sold for both states, assuming other information remains unchanged and NUR Berhad would like to maintain its annual profit. (Calculate to the nearest unit).
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