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6 Addin: Pottery Bhd, situated at Subang Bestari, produces a line of vases. The vases are produced mainly for the local market. The productlon and
6 Addin: Pottery Bhd, situated at Subang Bestari, produces a line of vases. The vases are produced mainly for the local market. The productlon and sales level for the past two months is as follows: 1,000.vases 2,000 vases Administration 4,000 4,000 Indirect labour 6,500 9,500 Power 800 1,000 Rental 1,400 1400 Selling and distribution 4,500 6,500 Direct labour 15,000 25,000 Factory supplies 1,500 2,500 Direct materlals 30,000 50,000 Electricity 500 500 Total cost 64,200 100,400 The production and sales level of Addin Pottery Bhd ranges between 1,000 to 2,000 vases per month. The average selling price of each vase is RM50.20. The normal production and sales levelof this company is 2,000 vases monthly with a maximum capacity of 4,000 vases. Que d. The company is planning to introduce a new product line, a salad bowl, of which the selling price and a variable cost of RM85 and 'RM45 respectively. The proposed sales mix is 40% for the vases and 60% for the salad bowl, The introduction of this new product line of 3,000 salad bowls will increase the total ixed cost by RM15,000. 1. Draw the profit-volume chart for these two products. 11. Indicate the BEP (in units) on the chart drawn III . Explain the chart drawn. 6 Addin: Pottery Bhd, situated at Subang Bestari, produces a line of vases. The vases are produced mainly for the local market. The productlon and sales level for the past two months is as follows: 1,000.vases 2,000 vases Administration 4,000 4,000 Indirect labour 6,500 9,500 Power 800 1,000 Rental 1,400 1400 Selling and distribution 4,500 6,500 Direct labour 15,000 25,000 Factory supplies 1,500 2,500 Direct materlals 30,000 50,000 Electricity 500 500 Total cost 64,200 100,400 The production and sales level of Addin Pottery Bhd ranges between 1,000 to 2,000 vases per month. The average selling price of each vase is RM50.20. The normal production and sales levelof this company is 2,000 vases monthly with a maximum capacity of 4,000 vases. Que d. The company is planning to introduce a new product line, a salad bowl, of which the selling price and a variable cost of RM85 and 'RM45 respectively. The proposed sales mix is 40% for the vases and 60% for the salad bowl, The introduction of this new product line of 3,000 salad bowls will increase the total ixed cost by RM15,000. 1. Draw the profit-volume chart for these two products. 11. Indicate the BEP (in units) on the chart drawn III . Explain the chart drawn
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