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B. Lazat Delight, who is the distributor of cake lapis, buys 2 different types of cakes from Aliza Confectionary Sdn Bhd and repacks the cakes
B. Lazat Delight, who is the distributor of cake lapis, buys 2 different types of cakes from Aliza Confectionary Sdn Bhd and repacks the cakes to sell at their own label. The following information relates to the cost involved: Purchase cost Repacking costs Lapis Oreo Lapis Cheese (RM) 36 42 (RM) 20 22 Selling price Sales volume (RM) (unit) 72 180 90 270 The cakes are kept in a dry and cool room rented at the cost of RM3,480 per month. The company also paid their workers at a guaranteed wage amounting to RM1,800 per month. Required: i. Calculate the break-even points (in unit and RM) for each product. (8 marks) ii. Determine the expected net profit for the company. (2 marks)
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