Walla manufactured Sdn Bhd is a car manufacturer that produce side mirror with a sales price...
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Walla manufactured Sdn Bhd is a car manufacturer that produce side mirror with a sales price of RM350 and a variable cost of RM150. Fixed costs are RM250,000 per annum with total unit sold was 1,400 units. You are required to calculate the following: A. Contribution/Sales ratio. B. Number of units to break-even. C. Sales (RM) at break-even point. D. Number of units to be sold to achieve a profit of RM150,000 per annum E. Based on B above, find the margin of safety in units. F. Briefly describe the margin of safety and its importance in a business. Walla manufactured Sdn Bhd is a car manufacturer that produce side mirror with a sales price of RM350 and a variable cost of RM150. Fixed costs are RM250,000 per annum with total unit sold was 1,400 units. You are required to calculate the following: A. Contribution/Sales ratio. B. Number of units to break-even. C. Sales (RM) at break-even point. D. Number of units to be sold to achieve a profit of RM150,000 per annum E. Based on B above, find the margin of safety in units. F. Briefly describe the margin of safety and its importance in a business.
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A ContributionSales ratio ContributionSales ratio Sales Variable Costs Sales Sales RM350 Variable Co... View the full answer
Related Book For
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
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