1. A company has established a budgeted sales revenue for the forthcoming period of RM 500,000 (10,000 units sold) with a profit of RM 275,000. Fixed production costs are RM 137,500 and fixed selling costs are RM 27,500.

i. Calculate the variable costs?

ii. If the company decides to achieve their target Income at RM 370,000, how many sales units that they have to incur?