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Am Berhad is a company producing tables. After discussing with the marketing manager, the production manager planning to focus on producing a product named AFI.
Am Berhad is a company producing tables. After discussing with the marketing manager, the production manager planning to focus on producing a product named AFI. The marketing manager is observing on two states, Selangor and Pahang, the sales at both states is expected to be RM500,000 an RM810,000 respectively. Information related to the cost per unit of the production for both states are as follows: SELANGOR (RM) PAHANG (RM) Selling price Direct material Direct labour Overhead 100 40 10 20 135 45 15 30 50% of the overhead in SELANGOR and PAHANG are fixed. 2.Calculate the followings and show all your workings. i. The break-even point (in unit and sales value) for both states. ii. The margin of safety (in unit) for both states. iii. Advice to the management in which state should the company sell AFI
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