QUESTION 2The following information relates to Maju Sdn. Bhd.RMFixed costs per annumSelling price per unitDirect material cost per unitDirect labour cost per unitVariable overhead cost per unit60,00020334The company currently sells 8,000 units of its product.Required:The questions below should be answered independently:a) Determine the number of sales units that the company has to sell in order to break even.b) Calculate the current profit of the company.c) Advise the manager on how many units must be sold to obtain RM30,000 profit.d) Due to an economic slowdown, sales volume is expected to reduce by 2,000 units.Therefore, the marketing manager decided to reduce the advertising expenses byRM10,000. The production manager decided to use a cheaper material which the price is10% lower than before. What is the profit obtained?e) The company decided to pay their salesmen based on units sold i.e. RM2.50 for each unitrather than the fixed amount of RM12,000. What is the new break-even point (in value andin units?)f) How many additional units must be sold to meet an increase in machinery rental byRM8,000 per annum without any change in the current profit.

Answered: Image /qna-images/answer/7a3062a8-6a04-4a5f-b2df-41ab548e0117.jpg

QUESTION 2 The following information relates to Maju Sdn. Bhd. RM Fixed costs per annum Selling price per unit Direct material cost per unit Direct labour cost per unit Variable overhead cost per unit 60,000 20 3 3 4 The company currently sells 8,000 units of its product. Required: The questions below should be answered independently: a) Determine the number of sales units that the company has to sell in order to break even. b) Calculate the current profit of the company.

QUESTION 2 The following information relates to Maju Sdn. Bhd. RM Fixed costs per annum Selling price per unit Direct material cost per unit Direct labour cost per unit Variable overhead cost per unit 60,000 20 3 3 4 The company currently sells 8,000 units of its product. Required: The questions below should be answered independently: a) Determine the number of sales units that the company has to sell in order to break even. b) Calculate the current profit of the company.

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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