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Baby Boom Sdn Bhd manufactures and sells a baby product. During the year 2018 , it considering manufacturing new product called Plink Teether. The company
Baby Boom Sdn Bhd manufactures and sells a baby product. During the year 2018 , it considering manufacturing new product called Plink Teether. The company predicting sales of 100,000 units, Baby Boom estimates the following expenses: Required: a. If the unit sales price is RM2, calculate the break even point (in units and sales value). (Hint: First compute the variable cost per unit) (6 marks) b. Calculate the margin of safety in (units and sales value). (4 marks) c. Calculate the contribution margin ratio. (3 marks) d. Calculate the company's profit for the year 2018 . 101000 (4 marks) e. If the company plan to earn profit of RM150,000, how many additional units need to be sold? 1354812 (4 marks f. Briefly discuss FOUR (4) assumptions to be applied in the cost-volume-profit analysis for a practical situation. (4 mark
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