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answer the question in english.. show the calculate and formula completely SECOND SEMESTER SESSION 2020/2021 AA025 ACCOUNTING 2 ASSIGNMENT 2 (10% PB MARKS) QUESTION 1

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answer the question in english.. show the calculate and formula completely

SECOND SEMESTER SESSION 2020/2021 AA025 ACCOUNTING 2 ASSIGNMENT 2 (10% PB MARKS) QUESTION 1 (30 MARKS) Noah Johan, sales manager and Diana Bakar, controller, at Tough Design are beginning to analyze the cost consideration for one of the composite models of the kayak division. They have provided the following production and operational cost necessary to produce one composite kayak. Composite Kevlar Resin and supplies Finishing kit (seat, rudder, ropes, etc.) Labor Selling and administrative expense- variable Selling and administrative expense - fixed Manufacturing overhead - fixed Cost (RM) 250 per kayak 100 per kayak 170 per kayak 420 per kayak 400 per kayak 119 700 per year 240 000 per year Noah and Diana have asked you to provide a cost-volume-profit analysis, to help them finalize the budget projections for the upcoming year. Noah has informed you that selling price of the composite kayak will be RM2000. Instruction: i) Calculate the variable cost per unit. (2 72 marks) ii) Determine the contribution margin per unit. (1 mark) iii) Identified the contribution margin at break-even point. (1 mark) iv) Using the contribution margin method, determine the break-even point in unit and ringgit (RM). (3 marks) v) Repeat iv using the mathematical equation. (2 marks) vi) Explain your answer in (iv). (3 marks) vii) Based on recent sales forecast, Tough Design plans to sell1000 units of this model. Using your result in (iv) calculate: a) margin of safety in unit and ringgit b) margin of safety ratio c) explain your answer in a) (4 marks) viii) Assume that Tough Design plans to earn RM270,600 on this product line. Using the contribution margin method, calculate the number of units to be sold to achieve this goal. (2 marks) age ix) Based on current situation Noah seek your advice if this suggestion, possible as an alternative to overcome the problem that company might experience such as drop in sales, jobless surge and increased in cost of direct material. Noah proposed the following plan: a) invest in promotion will cost additional fixed cost RM20 000 b) sales unit will increase 30% c) sales price will decrease in 10% d) cost direct material will increase in 20% e) labor cost will decrease in 10%. Projected sales 1000 units (9 V2 marks) x) Should Noah plan be implemented? Explain your answer. (2 marks)

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