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Sweet Sugar is a manufacturer which producing candy in various flavour. The sales price for each flavour is RM 50 per normal pack. Planned production and sales for the next year are as is 80,000 packs. The management has provided the following information:   Variable cost: Direct material (ingredients)                                                    RM 6.50 Direct labour                                                                            RM 16.00        Variable production overheads                                               RM 5.00   Fixed cost: Fixed production overheads                                                      RM 50,000 per year   Required: Calculate the following breakeven analysis: Contribution Margin (per unit)  Contribution Margin (RM)  Contribution / Sales Ratio

Sweet Sugar is a manufacturer which producing candy in various flavour. The sales price for each flavour is RM 50 per normal pack. Planned production and sales for the next year are as is 80,000 packs. The management has provided the following information:   Variable cost: Direct material (ingredients)                                                    RM 6.50 Direct labour                                                                            RM 16.00        Variable production overheads                                               RM 5.00   Fixed cost: Fixed production overheads                                                      RM 50,000 per year   Required: Calculate the following breakeven analysis: Contribution Margin (per unit)  Contribution Margin (RM)  Contribution / Sales Ratio

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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Sweet Sugar is a manufacturer which producing candy in various flavour. The sales price for each flavour is RM 50 per normal pack. Planned production and sales for the next year are as is 80,000 packs. The management has provided the following information:

 

Variable cost:

Direct material (ingredients)                                                    RM 6.50

Direct labour                                                                            RM 16.00       

Variable production overheads                                               RM 5.00

 

Fixed cost:

Fixed production overheads                                                      RM 50,000 per year

 

Required:

Calculate the following breakeven analysis:

  • Contribution Margin (per unit) 
  • Contribution Margin (RM) 
  • Contribution / Sales Ratio 
  • Break Even Point (Unit) 
  • Break Even Point (RM) 
  • Margin of safety (Unit)
  • Margin of safety (RM) 
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