Question
1) Tickman Fashion recently sold 70,000 shirts, generating sales revenue of RM4,900,000 . The company's variable cost per unit and total fixed cost amounted to
1) Tickman Fashion recently sold 70,000 shirts, generating sales revenue of RM4,900,000 . The company's variable cost per unit and total fixed cost amounted to RM20 and RM2,800,000, respectively . Management is in the process of studying the monetary impact of various transactions and events , and desires answers to the following independent cases : a) Management wants to lower the firm's break-even point to 52,000 units with all other things being equal . Calculate the fixed costs to achieve this objective . b) The company anticipates a RM2 hike in the variable cost per unit with all other things being equal . i) If management desires to keep the firm's current break-even point , calculate the selling price . ii) If selling price remains constant, calculate the firm's total fixed costs .
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