1. The following information related to Melati Sdn. Bhd. (MSB) for the product it sells:

Sales price RM35 per unit

Variable cost of goods sold RM16 per unit

Fixed cost of goods sold RM560,000

Variable selling expense 8% of sales price

Variable administrative expense RM2.30 per unit

Fixed selling expense RM398,000

Fixed administrative expense RM350,500

For the year ended 31 December 2019, MSB produced and sold 115,000 units of product.

Required:

(a) Prepare Cost Volume Profit (CVP) income statement using the contribution margin format for MSB for 2019. (10 marks)

(b) What was the company's break-even point in units in 2019? Use the contribution margin technique. (6 marks)

(c) What was the company's margin of safety in ringgit in 2019? (4 marks)