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b. JDR Manufacture Sdn Bhd involves in manufacturing a radio called Semboyan. The company sells the radio to electrical shops throughout the country. At the
b. JDR Manufacture Sdn Bhd involves in manufacturing a radio called Semboyan. The company sells the radio to electrical shops throughout the country. At the of year 2019, the accounting department has provided the Chief Executive Officer (CEO) an information about the current period (2019) and last period (2018) as follows: 1 Unit of Semboyan produced and sold 2 Selling price 3 Direct materials used (kits) 4 Direct materials cost per kits 5 Manufacturing capacity in kits processed 6 Total conversion costs 7 Conversion cost per unit of capacity 8 Selling and customer-service capacity 9 Total selling and customer-service costs 10 Selling and customer-service capacity cost per customer 2018 8,000 RM95.00 10,000 RM32.00 14,000 RM280,000.00 RM20.00 90 customers RM13,500.00 RM150.00 2019 11,000 RM80.00 11,000 RM32.00 13,000 RM260,000.00 RM20.00 90 customers RM16,200.00 RM180.00 REQUIRED: i. Calculate operating income of JDR Manufacture Sdn Bhd for 2018 and 2019. [4 marks] Calculate the growth and price recovery that explain the change in operating income from 2018 to 2019. [6 marks]
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