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
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(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.
Transcribed Image Text:(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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