The following is information for Prisma products issued by Tekun Sdn. Bhd. (TSB) RM Sales (3,000 units) 720,000 Variable cost 252,000 Contribution margin 468,000 Fixed cost 249,600 Net income 218,400 (i) To increase the production capacity of TSB, production managers are planning to buy a machine with a price of RM580,000. The estimated depreciation of the machine is RM72,000. The direct labor costs of operating the machine will increase by RM16 per unit. With this change, sales units are expected to increase to 4,500 units. Calculate (CLO, C3) the selling price per unit of Prisma product if TSB wants to maintain existing profit.

The following is information for Prisma products issued by Tekun Sdn. Bhd. (TSB) RM Sales (3,000 units) 720,000 Variable cost 252,000 Contribution margin 468,000 Fixed cost 249,600 Net income 218,400 (i) To increase the production capacity of TSB, production managers are planning to buy a machine with a price of RM580,000. The estimated depreciation of the machine is RM72,000. The direct labor costs of operating the machine will increase by RM16 per unit. With this change, sales units are expected to increase to 4,500 units. Calculate (CLO, C3) the selling price per unit of Prisma product if TSB wants to maintain existing profit.

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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