Salle products manufacture and distribute a single product. The company, which intends to maintain its unit product sales price for the current year, has budgeted to sell 15,000 units. Sales revenue of RM 1,200,000 is expected. Fixed overheads are forecasted at RM 120,000 for the year. The variable costs per unit are as follows: Direct materials RM 40 Direct labour RM 12 Variable overheads RM 8 Required: Calculate for the current year the: contribution/sales ratio break-even point in sales revenue and units margin of safety as a percentage of sales budgeted profit
Salle products manufacture and distribute a single product. The company, which intends to maintain its unit product sales price for the current year, has budgeted to sell 15,000 units. Sales revenue of RM 1,200,000 is expected. Fixed overheads are forecasted at RM 120,000 for the year. The variable costs per unit are as follows: Direct materials RM 40 Direct labour RM 12 Variable overheads RM 8 Required: Calculate for the current year the: contribution/sales ratio break-even point in sales revenue and units margin of safety as a percentage of sales budgeted profit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Salle products manufacture and distribute a single product. The company, which intends to maintain its unit product sales price for the current year, has budgeted to sell 15,000 units.
Sales revenue of RM 1,200,000 is expected.
Fixed
The variable costs per unit are as follows:
Direct materials RM 40
Direct labour RM 12
Variable overheads RM 8
Required:
Calculate for the current year the:
- contribution/sales ratio
- break-even point in sales revenue and units
- margin of safety as a percentage of sales
- budgeted profit
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