Question
Accountants , can u help i need to be first to answer this question for extra credit. I'll upvote immediately thanks in advance. e. Due
Accountants , can u help i need to be first to answer this question for extra credit. I'll upvote immediately thanks in advance.
e. Due to the forthcoming festive season, Tihani expects that the variable cost per unit will increase by 10%. If the current selling price is maintained, how many additional units does Tihani need to sell in order to maintain the present profit? (4 marks) f. Tihani has received an offer to sell 4,000 units to small restaurant near Puncak Alam but the offer requires Tihani to lower the current price by 20%. The offer will not interrupt her regular sales and there is no additional fixed cost will incur. Advise Tihanion whether she should accept the offer. (4 marks)
QUESTION 2 (25 MARKS) Tihani, the owner of Delicious Chicken restaurant conducted studies on cost behaviour and presented the following monthly costs that consist of variable costs and fixed costs, based on its current 5,000 production and sales units: Total monthly cost (RM) Direct materials (e.g. chicken, flour, cooking oil) RM 4,100 (100% variable) Labour (e.g. waiters, chefs) RM 3,600 (75% variable) Overheads (e.g. utility, rent) RM 3,000 (40% variable) Administrative costs (eg. manager's salaries) RM 2,000 (25% variable) The selling price that Tihani charges is RM4.50 per unit or per piece of chicken. Required: a. Calculate monthly fixed cost of Delicious Chicken and variable cost per piece of chicken. (5 marks) b. Determine the minimum sales unit and sales value of chicken that Tihani has to sell to ensure she does not incur any losses. (4 marks) c. Calculate the current profit of Delicious Chicken. (3 marks) d. Tihani is thinking of raising the current price of chicken by 20% which can cause the sales volume to reduce by 25%. Evaluate the effect of these changes on the current profitStep 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