(b)The Batu Pahat Kayak Company has these awesome new kayaks they are going tointroduce to the market. They are a new company and need help in determiningpricing, costs and how many kayaks they will need to sell in a month to break even.They are looking to you to help them determine if the selling price and costs willhelp them to reach their goals. They give you the following information shown inTable Q4(b) to work with;Table Q4(b)NO.ITEMSCOST (RM)Price per kayakVariable cost per kayakFixed cost per month1500222537,700(i)Determine the breakeven point.(ii)Batu Pahat Kayak has a few investors who are interested in getting a returnon their investment. They have talked with your supervisor, and betweenthem all, would like to get RM 30,000 a month in profit to divide betweenthem. Calculate how many kayaks need to be sold in order to get theinvestors their return.(iii)Determine how much in sales do we need.

Name: (b)The Batu Pahat Kayak Company has these awesome new kayaks they are
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Description: (b)The Batu Pahat Kayak Company has these awesome new kayaks they are going tointroduce to the market. They are a new company and need help in determiningpricing, costs and how many kayaks they will need to sell in a month to break even.They are loo

Breakeven sales point is that level of sales revenue at which business is only recovering its total…

Business

Accounting

Table Q4(b) NO. ITEMS COST (RM) Price per kayak 500 2 Variable cost per kayak 225 3 Fixed cost per month 7,700 (i) Determine the breakeven point. Batu Pahat Kayak has a few investors who are interested in getting a return on their investment. They have talked with your supervisor, and between them all, would like to get RM 30,000 a month in profit to divide between them. Calculate how many kayaks need to be sold in order to get the investors their return. (ii)

Table Q4(b) NO. ITEMS COST (RM) Price per kayak 500 2 Variable cost per kayak 225 3 Fixed cost per month 7,700 (i) Determine the breakeven point. Batu Pahat Kayak has a few investors who are interested in getting a return on their investment. They have talked with your supervisor, and between them all, would like to get RM 30,000 a month in profit to divide between them. Calculate how many kayaks need to be sold in order to get the investors their return. (ii)

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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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

(b)
The Batu Pahat Kayak Company has these awesome new kayaks they are going to
introduce to the market. They are a new company and need help in determining
pricing, costs and how many kayaks they will need to sell in a month to break even.
They are looking to you to help them determine if the selling price and costs will
help them to reach their goals. They give you the following information shown in
Table Q4(b) to work with;
Table Q4(b)
NO.
ITEMS
COST (RM)
Price per kayak
Variable cost per kayak
Fixed cost per month
1
500
2
225
3
7,700
(i)
Determine the breakeven point.
(ii)
Batu Pahat Kayak has a few investors who are interested in getting a return
on their investment. They have talked with your supervisor, and between
them all, would like to get RM 30,000 a month in profit to divide between
them. Calculate how many kayaks need to be sold in order to get the
investors their return.
(iii)
Determine how much in sales do we need.

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