Beta Shoes Sdn Bhd (BSSB) has been established since year 2018 and specialised in men shoes. The following details to BSSB which currently sells 30,000 pairs of shoes annually.

	RM
Selling price per pair of shoes	320.00
Variable cost per pair of shoes	100.00
Total annual fixed costs:
Salaries	900,000
Advertising	350,000
Other fixed expenses	380,000

Required:

Answer each part independently of data contained in other parts of the requirement:

(a) Calculate the break-even point and margin of safety in number of pairs of shoes sold.

(5 marks)

(b) Based on sales of 50,000 pairs of shoes, calculate BSSBs net profit/loss.

(5 marks)

(c) If direct material increases by RM15.00 per pair of shoes, how many pairs of shoes would need to be sold in a year in order to earn a net income of RM2,500,000?

(5 marks)

(d) Assume that for next year, an additional advertising campaign costing RM80,000 is proposed, whilst at the same time selling price is to be increased by 10%. What would be the break-even point in number of pairs of shoes? (5 marks)

(e) Name TWO (2) approaches to break-even analysis. Briefly explain how each approach works. (5 marks)

(Total: 25 Marks)