(a) Advanced Computer Sdn Bhd is involved in the manufacturing of computer network equipment. For the...

 

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(a) Advanced Computer Sdn Bhd is involved in the manufacturing of computer network equipment. For the next month, the company estimated to make sales of 250 units computer network equipment totaling RM400,000. Total variable cost is estimated at RM240,000 and total fixed cost is estimated at RM85,000. Required: i. Determine the company's contribution margin ratio. (5 marks) ii. Estimate the change in the company's net income if sales are increase by RM50,000. (5 marks) (b) A company has monthly fixed cost of RM112,000 and a contribution margin ratio of 40%. The unit contribution margin is RM16.00. Required: i. ii. Determine the monthly sales (units and sales RM) for the business to break even. (5 marks) Determine the monthly sales (units and sales RM) for the business if he wants to attain a target profit of RM50,000. (5 marks) (a) Advanced Computer Sdn Bhd is involved in the manufacturing of computer network equipment. For the next month, the company estimated to make sales of 250 units computer network equipment totaling RM400,000. Total variable cost is estimated at RM240,000 and total fixed cost is estimated at RM85,000. Required: i. Determine the company's contribution margin ratio. (5 marks) ii. Estimate the change in the company's net income if sales are increase by RM50,000. (5 marks) (b) A company has monthly fixed cost of RM112,000 and a contribution margin ratio of 40%. The unit contribution margin is RM16.00. Required: i. ii. Determine the monthly sales (units and sales RM) for the business to break even. (5 marks) Determine the monthly sales (units and sales RM) for the business if he wants to attain a target profit of RM50,000. (5 marks)

Answer rating: 100% (QA)

Lets solve each part step by step a i Determine the companys contribution margin ratio Contribution ... View the full answer