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Prestige Ltd. produces 3 products and has fixed costs of RM363,000 a year. Other data for the year are as follows: A B C Selling price per unit Variable cost per unit Relative sales mix RM18 RM12 RM36 RM12 RM7 RM27 0.4 0.3 0.3 Required: (i) Calculate the break-even point in units for each product individually. Determine how many units of each product must be sold in order to earn a net income of RM99,000. (ii) (iii) Explain any FOUR (4) assumptions in CVP analysis before we can use it effectively.

Prestige Ltd. produces 3 products and has fixed costs of RM363,000 a year. Other data for the year are as follows: A B C Selling price per unit Variable cost per unit Relative sales mix RM18 RM12 RM36 RM12 RM7 RM27 0.4 0.3 0.3 Required: (i) Calculate the break-even point in units for each product individually. Determine how many units of each product must be sold in order to earn a net income of RM99,000. (ii) (iii) Explain any FOUR (4) assumptions in CVP analysis before we can use it effectively.

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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plzz explain below three points correctly

Prestige Ltd. produces 3 products and has fixed costs of RM363,000 a year. Other data for the year are as follows: C RM36 A Selling price per unit Variable cost per unit Relative sales mix RM18 RM12 RM12 RM7 RM27 0.4 0.3 0.3 Required: (i) Calculate the break-even point in units for each product individually. Determine how many units of each product must be sold in order to earn a net income of RM99,000. (ii) (iii) Explain any FOUR (4) assumptions in CVP analysis before we can use it effectively.
Transcribed Image Text:Prestige Ltd. produces 3 products and has fixed costs of RM363,000 a year. Other data for the year are as follows: C RM36 A Selling price per unit Variable cost per unit Relative sales mix RM18 RM12 RM12 RM7 RM27 0.4 0.3 0.3 Required: (i) Calculate the break-even point in units for each product individually. Determine how many units of each product must be sold in order to earn a net income of RM99,000. (ii) (iii) Explain any FOUR (4) assumptions in CVP analysis before we can use it effectively.
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