Question 4 Elite Sdn Bhd produces a special tumbler "MONPIKO" sold for RM69 per unit. The normal yearly production and sales for the tumblers are 10,000 units. The following data consists of costs incurred during the year ended 2023: Material (100% variable) Labour (60% variable) Variable selling expenses Fixed selling expenses Fixed administrative expenses Required: a) Compute the total variable cost per unit. RM 60,000 70,000 18,000 45,000 30,000 b) Compute break-even point in units and value. c) Calculate the sales value if the company targets a profit of RM60,000. d) Calculate the margin of safety in unit and value.

Question 4 Elite Sdn Bhd produces a special tumbler "MONPIKO" sold for RM69 per unit. The normal yearly production and sales for the tumblers are 10,000 units. The following data consists of costs incurred during the year ended 2023: Material (100% variable) Labour (60% variable) Variable selling expenses Fixed selling expenses Fixed administrative expenses Required: a) Compute the total variable cost per unit. RM 60,000 70,000 18,000 45,000 30,000 b) Compute break-even point in units and value. c) Calculate the sales value if the company targets a profit of RM60,000. d) Calculate the margin of safety in unit and value.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 1CE: The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:...

See similar textbooks

Similar questions

Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings total annual fixed costs are 38,400. If operating income last year was 28,800, what was the number of units Starling sold? a. 4,800 b. 6,400 c. 5,600 d. 11,200
Hobbs Company produces one product for which following is information is available. Product A S per unit Selling price 6.00 Direct Material 2.50 Direct Labor 1.40 Variable overhead 1.10 $ 120,000 per annum Total Fixed cost Sales units 200,000 per annum |Required: a) Calculate contribution margin per unit. b) Calculate break even point in units. c) Calculate break even point in sales value d) Calculate profit for the year based on total contribution. e) Calculate Margin of safety in units and percentage of sales.
Given: The annual accounting data for 2018, presented below. : 1500K$ : 1000K$ Fixed factory overhead : 300K$ Variable factory overhead: 200KS Fixed admin costs : 500K$ Variable admin costs : 250KS : 400K$ 50KS :6000K$ Direct material Direct labour Sales salaries Sales commissions Sales Revenues Required: Write an income statement for the data given above, using a) the gross margin technique, and b) the contribution margin technique
Patchi, which began business at the start of the current year, had the following data: Planned and actual production: 40,000 units Sales: 37,000 units at ₱15 per unit Production costs: Variable: ₱4 per unit Fixed: ₱260,000 Selling and administrative costs: Variable: ₱1 per unit Fixed: ₱32,000 The contribution margin that the company would disclose on an absorption-costing income statement is: A. ₱0 B. ₱147,000 c. ₱166,500 D. ₱370,000
Agta Enterprises manufactures a product that sells for R180 each. The company presently produces and sells 50 000 units per year. Unit variable manufacturing and selling expenses are R90 and R18 respectively. Annual fixed costs are R2 200 000 for manufacturing overheads and R1 040 000 for selling and administrative activities. Determine the sales quantity required in order to achieve the company’s profit objective of R1 800 000.
provide the variable cost per unit
Farrow Company reports the following annual results. Contribution Margin Income Statement Sales (440,000 units) Variable costs Direct materials Direct labor Overhead Contribution margin. Fixed costs Fixed overhead Fixed general and administrative Income Per Unit $15.00 2.00 4.00 2.50 6.50 2.00 1.50 $ 3.00 (a) Compute the income or loss for the special offer. (b) Should the company accept or reject the special offer? Required A Required B Annual Total $ 6,600,000. 880,000 1,760,000 1,100,000 2,860,000 The company receives a special offer for 44,000 units at $12 per unit. The additional sales would not affect its normal sales. Variable costs per unit would be the same for the special offer as they are for the normal units. The special offer would require incremental fixed overhead of $176,000 and incremental fixed general and administrative costs of $189,000. 880,000 660,000 $ 1,320,000 Complete this question by entering your answers in the tabs below.
How many units must be sold if the company wishes to earn a net profit of R298 920. INFORMATIONSamcor Limited manufactures tables. The following information was extracted from the budget for the year ended 30 June 2022:1. Total production and sales 2 400 units2. Selling price per table R1 2003. Variable manufacturing costs per table:Direct material R288Direct labour R192Overheads R964. Fixed manufacturing overheads R216 9605. Other costs:Fixed marketing and administrative costs R144 000Sales commission 5%
Mazoon Company has information on its revenue and costs is as follows: Selling price per unit $80; Variable costs per unit includes: Direct material $16, Direct manufacturing labor $8, Manufacturing overhead $8, and Selling costs $10; Annual fixed costs $96,000. What is the contribution margin percentage? Finisk a. 47.5% O b. 52.5% O c. 70% ype here to search & 7. V 3 5. 8. W. R Y. G H. V M alt ctri alt 立
Algee Ltd plans to manufacture kettles and the following information is applicable: Estimated sales for the year 20.15 Estimated costs for the year 20.15 Direct material 14 000 units at R80 each R24 per unit Direct labour Factory overheads (all fixed) Selling expenses Administrative expenses (all fixed) R4 per unit R48 000 per annum 30% of sales R78 000 per annum 3.1 Calculate the break-even quantity 3.2 Calculate the break-even value using the marginal income ratio. 3.3 Calculate the selling price per unit if the profit per unit is R4. 3.4 Calculate the new break-even quantity and value if selling price is increased by 10%. 3.5 Calculate the selling price if 14 000 units provide an operating profit of RO after an additional advertising expense of R54 000
What is the net income for April 2022 under absorption costing?
If fixed costs are $1,209,000, the unit selling price is $226, and the unit variable costs are $109, the amount of sales (units) required to realize an operating income of $205,000 is Oa. 1,881 units Ob. 12,085 units Oc. 5,350 units Od. 11,092 units