(a) Safe Stay-At-Home Enterprise (SAH) produces and sells e-sports equipment & software. During the movement control order (MCO), the demand for its product has increased. The company's income statement for the most recent month is given below: RM240,000 RM48.000 60,000 12,000 30.000 150.000 Sales (6,000 units at RM40 per unit) Less manufacturing costs: Direct materials Direct labor (variable) Variable factory overhead Fixed factory overhead Gross profit Less selling and other expenses: Variable selling and other expenses Fixed selling and other expenses Net operating income There are no beginning or ending inventories 90.000 24,000 42.000 66.000 RM24.000 Required: Compute the company's monthly break-even point in units of product i. (5 marks) ii. Compute the company's monthly net operating income if sales increased by 30% and due to increase in advertising cost by RM10,000. (5 marks) What ringgit sales must the company achieve in order to earn a net operating income of RM70,000 per month ili. ACC3208 / Page 2 of 5 (3 marks) iv. The company has decided to automate a portion of its operations. The change will reduce direct labor costs per unit by 50 percent, but it will double the costs for fixed factory overhead. Compute the new break-even point in units. (7 marks) (b) Coconice Sdn Bhd and Cocobury Sdn Bhd produce and sell cocoa powder. The total fixed costs and variable costs per unit for both companies are the same. Although Coconice sells its coca powder at a price lower than the price Cocobury is selling, both of them gain the same amount of profits. Discuss how this can happen. You may illustrate your explanation by showing computations. (10 marks) Total: 30 marks