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answer fully with explaination Question 1 The following budgeted profit statements relate to two companies, Boyorlali Bhd and Cawas Berhad, which are in a similar

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Question 1 The following budgeted profit statements relate to two companies, Boyorlali Bhd and Cawas Berhad, which are in a similar industry that manufacture and sell the same products. Beyerlali Berhad Cawas Berhad (RM) (RM) Sales at RM1.00 per unit 750,000 750,000 Variable costs 220.500 450,000 Fixed costs 320,500 100,000 Required: (a) Calculate for each of the two companies: (1) Break-even point in value (to the nearest RM'000). (4 marks) (ii) Margin of safety in value. (2 marks) The net profit if sales are 20% above the break- even point (4 marks) (b) (c) A new product was introduced by another competitor Delanggu Berhad. This caused the selling price to fall by RM0.20 per unit. Calculate the revised profit for both companies and state which company would do better in performance (5 marks) The rise in inflation is unavoidable, causing all production costs to be escalated. The variable cost and the fixed cost will increase by 30% and 10% respectively. Calculate the new break-even point in value (to the nearest RM"000). (5 marks) Briefly explain the following terms: (1) Contribution margin Margin of safety (5 marks) (Total: 25 marks) (d)

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