QUESTION 1 The Asian Division of Worldwide Reference Corporation produces a pocket dictionary containing popular phases in six Asian languages. Last year, the company sold 100,000 units of dictionary at RM20 per unit. Given below the cost incurred with regard to the dictionary in last year. Costs: Variable (RM) Fixed (RM) Direct material 600,000 400,000 300,000 100,000 Direct labour Production overhead 200,000 220,000 Selling and administrative The company expects the same costs as last year will incur for the current year. Required: a. Compute the company's break-even point in units and sales value. b. Compute the company's margin of safety in units and sales value. c. Compute the operating income for last year of Asian Division.
QUESTION 1 The Asian Division of Worldwide Reference Corporation produces a pocket dictionary containing popular phases in six Asian languages. Last year, the company sold 100,000 units of dictionary at RM20 per unit. Given below the cost incurred with regard to the dictionary in last year. Costs: Variable (RM) Fixed (RM) Direct material 600,000 400,000 300,000 100,000 Direct labour Production overhead 200,000 220,000 Selling and administrative The company expects the same costs as last year will incur for the current year. Required: a. Compute the company's break-even point in units and sales value. b. Compute the company's margin of safety in units and sales value. c. Compute the operating income for last year of Asian Division.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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