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business informatics QUESTION 2 Coffeeworks Limited manufactures coffee machines for domestic use. The management of the company is considering next year's production and has asked

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business informatics
QUESTION 2 Coffeeworks Limited manufactures coffee machines for domestic use. The management of the company is considering next year's production and has asked you to help with certain financial decisions. The following information is available: Selling price (per machine) RM 80 Direct materials (per machine) RM 25 Direct labour (per machine) RM 30 Fixed production overheads RM 270,000 per year The company is planning to manufacture 15,000 coffee machines next year. a) Determine the following i. The marginal cost per coffee machine ii. The absorption cost per coffee machine iii. The break-even point in term of Unit iv. The break-even point in term of Unit Sales Volume The Margin of Safety (10 Marks) b) Prepare a statement of profit or loss (Using Marginal Costing Approach) to show the profit or loss if 15,000 coffee machines are sold (5 Marks) V. The production manager is proposing the use of new machinery that will reduce the material cost by 8% and the labour cost by 10%. The new machinery will have an additional fixed cost of RM 60,000. The production manager is asking for your advice whether the new machine benefit Coffeeworks c) Based on information above, determine the following i. The new marginal cost per coffee machine ii. The new break-even point in term of Unit Calculate the new Margin of Safety (6 Mark) Prepare a new statement of profit or loss (Using Marginal Costing Approach) to show the profit or loss if 15,000 coffee machines are sold (3 Marks) iv. Question 1 (CL01) a) Explain why databases are important to a company's profitability and competitive advantage [10 marks] b) Discuss the business intelligence (BI) tools available to managers and end users. [10 marks) c) Explain how customer relationship management systems help a company build and nurture strong, long-lasting relationships with customers. [10 marks] d) Explain the bullwhip effect in supply chain management and how it can be corrected. [10 marks) (Total: 40 marks)

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