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2 Pridya Enterprise is a small manufacturing enterprise that producesornaments for holiday decoration. One of the top sales ornaments is 'Red Star. Production of each
2 Pridya Enterprise is a small manufacturing enterprise that producesornaments for holiday decoration. One of the top sales ornaments is 'Red Star. Production of each unit of the ornament requires the following resources: Material C Packaging Skilled Labour 2 units @ RM8 per unit RM3.00 per unit 3 hours @ RM11 per hour The yearly annual factory rental is RM52,800. The monthly budgetedsales unit of Red Star is 2,400 units at RM68 per unit. Required to compute: (a) (b) (c) (d) Contribution margin per unit. (2 marks) Break-even point in units and value. (4 marks) Determine the margin of safety in units and value. (4 marks) The management is considering to acquire a new machine to havedifferent varieties of Red Star sizes. The machine will cost RM12,000. Determine how many extra units to be sold to obtain the same profit with current forecasted sales unit. (9 marks) Pridya Enterprise is being offered a new exclusive packaging material that is 15% higher than the current cost of packaging materials. It is expected that the sales volume will increase by 1,000 units. Determine the new break even in units and value (6 marks) (e)
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