Beatrice Sdn Bhd manufactures and sells two products namely BEAT andRICE. Both of these products have contribution margin ratios of 40 and 30percent respectively. Meanwhile, the selling prices were set at RM 5 and RM2.50 per unit respectively. Fixed costs are amounting to RM 72,000 per month.The monthly sales average are 30,000 units of BEAT and 40,000 units ofRICE.Required:(i)Based on the scenario as above, calculate the contribution margin forboth of the products.(ii)Let's assume, Beatrice assigns RM 36,000 in fixed costs to each productper month. Calculate the break-even sales in RM for each product.(iii)Beatrice is considering spending an additional RM 9,700 per month onadvertising. This action is intending to give more emphasis to BEATcompared to RICE. If its analysis is correct, sales of BEAT will increaseto 40,000 units per month and sales of RICE will be reduced to 32,000units per month. Do you think, the proposal to spend the additional RM9,700 a month for the advertisement to be accepted?

In the given question, we are provided with the data of Beatrice Sdn Bhd manufacturers which sells…

Answered: Beatrice Sdn Bhd manufactures and sells…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 7PA: Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model...

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Success Sdn Bhd sells lorries. During the current year, 100 lorries were sold resulting inRM820,000 of sales revenue, RM250,000 of variable costs, and RM342,000 of fixedcosts. Required: Calculatea. the number of lorries that must be sold to achieve RM300,000 of operatingincome. b. the contribution margin at the breakeven point of 2,000 units, variable coststotal RM4,000 and fixed costs total RM6,000. c. Explain the term breakeven point.
Bloom Company management predicts that it will incur fixed costs of $267,000 and earn pretax income of $353,100 in the next period. Its expected contribution margin ratio is 53%. Required: 1. Compute the amount of total dollar sales. 2. Compute the amount of total variable costs. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the amount of total dollar sales. Dollar Sales Choose Numerator: / Choose Denominator: = 1 of 5 F8 Next > F9 18 F10 F11 F12 Fn Lock 3:25 PM 6/16/2022 Insert
The fixed costs for the current year are Rs. 100,000. The estimated sales for the period are valued at Rs. 240,000. The variable cost per unit for the single product made is Rs. 8. If each unit sells at RS.30. and the number of units involved coincides with the expected volume of output, construct the Breakeven Chart by using scale paper then : (i) Determine the breakeven point. (ii) Find out above how many units, the company should produce to seek profit. (iii) Determine the profit earned at a turnover of Rs. 170,000. (iv) Find the margin of safety. (v) Calculate the angle of incidence.
Spectrum Corp. makes two products: C and D. The following data have been summarized: (Click the icon to view the data.) Spectrum Corp. desires a 25% target gross profit after covering all product costs. Considering the total product costs assigned to the Products C and D, what would Spectrum have to charge the customer to achieve that gross profit? Round to two decimal places. Begin by selecting the formula to compute the amount that the company should charge for each product. Required sales price per unit Data table Direct materials cost per unit Direct labor cost per unit Indirect manufacturing cost per unit Total costs assigned Print $ $ Product C 600.00 $ 300.00 270.00 1,170.00 S Done - X Product D 2,400.00 200.00 604.00 3,204.00
Spectrum Corp. makes two products: C and D. The following data have been summarized: (Click the icon to view the data.) Spectrum Corp. desires a 27% target gross profit after covering all product costs. Considering the total product costs assigned to the Products C and D, what would Spectrum have to charge the customer to achieve that gross profit? Round to two decimal places. Begin by selecting the formula to compute the amount that the company should charge for each product. Total product cost per unit Spectrum should charge 2091.10 for Product C. Data table Direct materials cost per unit Direct labor cost per unit Indirect manufacturing cost per unit Total costs assigned Print Product cost as a percentage of sales price Product C $ 900.00 $ 400.00 226.50 $ 1,526.50 $ Done Product D 2,400.00 100.00 531.00 3,031.00 X = Required sales price per unit G
Barkley Company sells two products, red cups and black mugs. Barkley predicts that it will sell 2,000 red cups and 600 black mugs in the next period. The unit contribution margins for red cups and black mugs are $2.20 and $3.90, respectively. What is the weighted average unit contribution margin? (Round the final answer to the nearest cent.) O A. $0.90 O B. $2.59 O C. $3.37 O D. $7.33
b) Ceria Company plans to sell 5,000 bicycle helmets at RM75 each in the coming year. Variable cost is 60% of the sales price; contribution margin is 40% of the sales price. Total fixed cost equals RM49,500 (includes fixed factory overhead and fixed selling and administrative expense). Required: Calculate the sales income that Ceria must make to break even by using the break- even point in sales equation. Check your answer by preparing a contribution margin income statement based on the break-even point in sales value (RM).
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Craylon Manufacturing Company produces two products, X and Y. The following information is presented for both products: X Y Selling price per unit $40 $25 Variable cost per unit 25 15 Total fixed costs are $275,000.Required:a. Calculate the contribution margin for each product.b. Calculate breakeven point in units of both X and Y if the sales mix is 3 units of X for every unit of Y.c. Calculate breakeven volume in total dollars if the sales mix is 2 units of X for every 3 units of Y.
Voice Com, Inc., uses the product cost method of applying the cost - plus approach to product pricing. The costs of producing and selling 5,000 units of cell phones are as follows:Voice Com desires a profit equal to a 13% rate of return on invested assets of $600, 800.a. Determine the amount of desired profit from the production and sale of 5,000 units of cell phones.Sfill in the blank 1b. Determine the product cost per unit for the production of 5,000 of cell phones. If required, round your answer to nearest dollar.Sfill in the blank 2 per unitc. Determine the product cost markup percentage (rounded to two decimal places) for cell phones.fill in the blank 3 %d. Determine the selling price of cell phones. Round to the nearest dollar.
A business has selling price of P 129.50 with an average variable cost of P 54.40. Fixed costs are P 1,400,000. Calculate the following: What is the unit contribution margin? (Answer the figures only; two decimal places)
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