Top Wood is a small manufacturing company currently making a single type of chair. The managing director presents to you the following details of estimated revenue and cost per unit for the year ended 31 December 2021: Quantity (Units) 2,000 Number of Chairs made and sold Price per unit (RM) 100 Selling price Total variable cost per unit: Raw material Direct labour Manufacturing overheads Selling cost RM 15 16 11 8 The following information is taken into consideration: (1) Total manufacturing overheads cost estimated for the year amounting to $110,000 of which 20% is variable manufacturing overhead cost. (2) The company's total selling costs for the year amounting to $19,500 inclusive of fixed and variable costs. (3) All units produced can be sold as soon as they are made, and no stocks are kept. (4) The directors have been considering their plan for the year ending 31 December 2021. The company intends to increase the sales by 30% if the fixed selling costs increase by $14,964 and the direct labour cost per unit increase to $18. Required:_ (i) Calculate the margin of safety express in units and percentage.

Top Wood is a small manufacturing company currently making a single type of chair. The managing director presents to you the following details of estimated revenue and cost per unit for the year ended 31 December 2021: Quantity (Units) 2,000 Number of Chairs made and sold Price per unit (RM) 100 Selling price Total variable cost per unit: Raw material Direct labour Manufacturing overheads Selling cost RM 15 16 11 8 The following information is taken into consideration: (1) Total manufacturing overheads cost estimated for the year amounting to $110,000 of which 20% is variable manufacturing overhead cost. (2) The company's total selling costs for the year amounting to $19,500 inclusive of fixed and variable costs. (3) All units produced can be sold as soon as they are made, and no stocks are kept. (4) The directors have been considering their plan for the year ending 31 December 2021. The company intends to increase the sales by 30% if the fixed selling costs increase by $14,964 and the direct labour cost per unit increase to $18. Required:_ (i) Calculate the margin of safety express in units and percentage.

Name: Top Wood is a small manufacturing company currently making a single t
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Description: Top Wood is a small manufacturing company currently making a single type ofchair. The managing director presents to you the following details of estimatedrevenue and cost per unit for the year ended 31 December 2021:Quantity(Units)2,000Number of Cha

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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