Industri Minuman Herba (IMH) produces a special drink called "Jus-Sihat". It has been operating for the last 4 years. Recently, the management attempted to analyse the costs according to their behaviour. As the junior accountant of the business, you are assigned the task to redefine the cost analysis as requested by the management. During the early stage of your research, you have discovered the following cost information: Level of Production 5,000 bottles 10,000 bottles Production Costs Total Cost Total Cost (RM) (RM) Direct materials 8,000 16,000 Direct labour 9,500 19,000 Utilities 2,000 3,300 Rent 4,000 4,000 Maintenance 800 1,400 Supervisory 1,000 1,000 salaries
Industri Minuman Herba (IMH) produces a special drink called "Jus-Sihat". It has been operating for the last 4 years. Recently, the management attempted to analyse the costs according to their behaviour. As the junior accountant of the business, you are assigned the task to redefine the cost analysis as requested by the management. During the early stage of your research, you have discovered the following cost information: Level of Production 5,000 bottles 10,000 bottles Production Costs Total Cost Total Cost (RM) (RM) Direct materials 8,000 16,000 Direct labour 9,500 19,000 Utilities 2,000 3,300 Rent 4,000 4,000 Maintenance 800 1,400 Supervisory 1,000 1,000 salaries
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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The management is trying to figure out the minimum level of sales the company must maintain to ensure that the company does not fall into a loss situation. Currently the juice is sold at RM5.50 per bottle. Help them to determine that level of sales. Explain to management.
![of 8 Q
CASE 2
Industri Minuman Herba (IMH) produces a special drink called "Jus-Sihat". It has
been operating for the last 4 years. Recently, the management attempted to analyse
the costs according to their behaviour. As the junior accountant of the business, you
are assigned the task to redefine the cost analysis as requested by the
management. During the early stage of your research, you have discovered the
following cost information:
Level of
Production
5,000 bottles
10,000 bottles
Production Costs
Total Cost
Total Cost
(RM)
(RM)
Direct materials
8,000
16,000
Direct labour
9,500
19,000
Utilities
2,000
3,300
Rent
4,000
4,000
Maintenance
800
1,400
Supervisory
1,000
1,000
salaries
9.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F87b5cdd3-50b6-4ec0-9d6f-07aea0df2f13%2F51897222-ce50-49ed-9b01-c9b24744d04f%2Fekr26yd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:of 8 Q
CASE 2
Industri Minuman Herba (IMH) produces a special drink called "Jus-Sihat". It has
been operating for the last 4 years. Recently, the management attempted to analyse
the costs according to their behaviour. As the junior accountant of the business, you
are assigned the task to redefine the cost analysis as requested by the
management. During the early stage of your research, you have discovered the
following cost information:
Level of
Production
5,000 bottles
10,000 bottles
Production Costs
Total Cost
Total Cost
(RM)
(RM)
Direct materials
8,000
16,000
Direct labour
9,500
19,000
Utilities
2,000
3,300
Rent
4,000
4,000
Maintenance
800
1,400
Supervisory
1,000
1,000
salaries
9.
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