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A. Purple Battery Ltd makes and sells a single product and the following forecast information is available for the year ending 31 March 2021. The
A. Purple Battery Ltd makes and sells a single product and the following forecast information is available for the year ending 31 March 2021. The projected sales price is RM60 a unit and the company's budgeted level of sales are 20,000 units for the year. The fixed costs are RM120,000 per annum. Required: a) Find the sales value and sales units necessary to break even. (4 marks) b) Find the new break-even point in units and RM if a 15% increase in the direct materials unit price. (6 marks) c) Find the net profit for the company if the budgeted level of sales increased to 35,000 units. (4 marks) d) Find the number of sales units to achieve a target profit of RM40,000. (4 marks) e) Find the company's Margin of Safety in units and RM (4 marks) f) Briefly expalain the term of direct cost and indirect cost. Give ONE (1) example each. (4 marks)
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