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4 Syarikat Rahila Sdn. Bhd. is a distributor of a type of health food supplement. The company's director is planning the company's financial strategy for
4 Syarikat Rahila Sdn. Bhd. is a distributor of a type of health food supplement. The company's director is planning the company's financial strategy for next year. He has compiled the following data sets for next year's operations. Annual sales volume Selling price per unit Fixed cost Variable cost Supplement cost 400,000 boxes RM12.80/unit RM675,840 RM6.40/box 1.28/bax Sales and administration cost After the data was collected, the new director realised that manufacturers had increased the cost of supplements by 25% for next year due to an increase in the price of a type of raw material for making supplements. Required: a) Calculate the contribution margin ratio before increase in a cost of supplements. (2 marks) b) Calculate the break-even point (in units and in RM) before the cost is increased. (4 marks) c) Calculate the expected net income before cost increases. (4 marks) d) If there is a 25% increase in the purchase cost of the supplement, calculate the new selling price to maintain the original contribution margin ratio. (5 marks) (Total: 15 Marks)
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