Answered step by step
Verified Expert Solution
Question
1 Approved Answer
(a) (b) remarks: can I get answer for this question within 1 hour? Premier Tech is a private vocational school. The school bases its budgets
(a)
(b)
remarks: can I get answer for this question within 1 hour?
Premier Tech is a private vocational school. The school bases its budgets on two measures of activity (ie, cost drivers), namely student and course. The school uses the following data in its budgeting: Fixed Variable Variable element element per element per per month student course (RM) (RM) (RM) Revenue 0 362 0 Faculty wages 0 0 2,500 Course supplies 0 51 24 Administrative 45,200 15 20 expenses In December, the school budgeted for 1,770 students and 148 courses. The school's Statement of Comprehensive Income showing the actual results for the month appears below: Premier Tech Statement of Comprehensive Income For the Month Ended 31st December 2020 Actual students 1,470 Actual courses 149 RM544,100 Revenue Expenses: Faculty wages Courses supplies Administrative expenses Total Expense Net operating income Required: RM371,100 RM78,856 RM71,070 RM521,036 RM23,064 Prepare a report showing the school's revenue and spending variances for December 2020. (15 marks) The COVID-19 outbreak is a sharp reminder that pandemics, like other rarely occurring catastrophes, have happened in the past and will continue to happen in the future. This not only has consequences for the economy but all of society is affected, which has led to dramatic changes in how businesses strategy change. Due to this, Razif, an engineer who have just recently terminated by his company, seeks your advice for his business plan. Razif plans to start a mobile "keropok ekor kebabom" business in two months' time after being terminated by his former company. He does not need to purchase a van because his uncle has agreed to loan him the van for two years without charge. However, Razif has to pay only for the fuel consumption of the van. He estimated the following costs for each month of operation: RM 10 150 Monthly costs Business Licence Salary for his assistance Cost of van fuel Cost of cooking gas 50 50 The cost per unit of keropok lekor kebabom is as follows: RM 0.18 0.10 Material A Material B Material C Material D Other ingredients Wrapping plastic 0.10 0.05 0.10 0.07 Razif sets the selling price at RM1.20 per unit of keropok lekor kebabom because he found that this is the most reasonable price of keropok lekor in the vicinity of his business. Required (a) Calculate how many units of keropok lekor kebabom must be sold in order to achieve a profit of RM1,000 per month. (6 marks) (b) Razif intends to reduce the price to RM1 per unit of keropok lekor kebabom if he sells in a remote area. Compute the break-even point units and value if he operates in the remote area. (6 marks) (c) During a wet season, Razif estimates that he can only sell 1,800 unit of keropok lekor kebabom per month in the non-remote area. Determine his profit during the wet season! (5 marks) (d) Refers change in 1(b) and assume other data remains the same as original data, calculate margin of safety in unit and value if Razif plan to sell 1,000 per monthStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started