Answered step by step
Verified Expert Solution
Question
1 Approved Answer
B NESFRESSO Experts Limited manufactures coffee machines for domestic use. In early 2020, the company introduced a new model of Aristo Coffee Maker with a
B NESFRESSO Experts Limited manufactures coffee machines for domestic use. In early 2020, the company introduced a new model of Aristo Coffee Maker with a seling price of RM500 per unit . The management of the company is considering next year's production and has asked you to suggest a plan to improve the profitability of the company. The budgeted revenue and costs data are as follows: Budgeted volume 5,000 units per year Cost per unit: Direct labour Direct material Variable overhead RM/unit 100 125 15 Fixed cost RM58.000 per month 1 ii. Required: Calculate the annual break-even point in units and value (RM) Determine the margin of safety in units and value (RM) ill. Compute the estimated net profit to be earned by the company. If they plan to sell 8,000 units of Aristo Coffee Maker Assume that there is an increase in the marketing campaign costing RM12.000 per month and direct material by 20% while other costs remain the same. Find the new selling price that need to be set if the company wishes to maintain the existing budgeted profit iv
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started