1.Mr. Mark manufactures a single product. Total cost per unit is $100 when production is 80 units per week, and $87.50 when production is 120 units per week. What are the total variable costs per week?

The marginal costing operating statement of Jaya Sdn Bhd for the year just ended is as follow:

RM

Sales (5,000 units at RM4 per unit) 20,000

Variable costs ( direct materials, direct labour, etc.) 8,000

Contribution 12,000

Fixed cost 7,500

Profit 4,500

1.

Based on scenario of this section above. Calculate the selling price to be charged to earn a profit of RM22,500 on sales of 10,000 units .

2.Based on scenario of this section above. Calculate the margin of safety.

3.Based on scenario of this section above. Determine the sales level (in RM) to achieve a target profit of RM22,500