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(a) Kate runs a small electric cordless chainsaw tree cutting machine factory. He can make 350 electric cordless chainsaw tree cutting machines per year and
(a) Kate runs a small electric cordless chainsaw tree cutting machine factory. He can make 350 electric cordless chainsaw tree cutting machines per year and sell them for RM410 each. It costs Kate RM20,0I00 for raw materials to build the 350 electric cordless chainsaw tree cutting machines. Kate has invested RM795,000 in the factory and equipment needed to produce the electric chainsaw tree cutting machines which are new assets that he owns; M41000 from his own savings which was earning 2% interest and RMTSODOO borrowed at 3.5% interest. To open his own electric cordless chainsaw tree cutting machine factory, Kate would have to quit his currentjeh1 where he is earning an annual of RM35,000. *Hint: The RMTBS, 000 invested in the factory and equipment is not treated as a cost here because they represent assets of the firm, there is however a cost associated with obtaining these funds. Based on the given situation, (i) What is the total revenue Kate can earn in a year? [2 marks] (ii) What are the explicit costs Kate incurs while producing 350 electric cordless Chainsaw tree cutting machines? [2 marks] (iii) 'Nhat are the total opportunity costs of producing 350 grass cutting machines (explicit and implicit)? [2 marks] (iv) What is the value of Kate's accounting prot
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