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Can anyone solve the following question: Question 6 Bestari Main Sdn Bhd is a company producing and selling Bestari Juice. Financial data concerning the company

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Can anyone solve the following question:

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Question 6 Bestari Main Sdn Bhd is a company producing and selling Bestari Juice. Financial data concerning the company are as follows: Selling price per bottle RM90.00 Sales volume 5,000 bottles Variable cost per bottle: Direct material RM25.00 Direct labour RM8.00 Manufacturing overhead RM7.00 Fixed costs: Annual rental RM36,000 Annual salaries RM60,000 Motor vehicle RM80,000 (depreciated at 10% per annum) Machinery RM50,000 (depreciated at 15% per annum) Miscellaneous RM1,500 per month The owner is now considering a few alternatives for future expansion and comes to see you for an advice.Required: a) At the current operating level, identify the following: i. Break-even point (in bottles) of Bestari Main Sdn Bhad ii. The number of bottles of Bestari Juice that need to be sold by the company in order to obtain a net profit of 40% of sales. b) The company plans to improve the quality of Bestari Juice next year, but the improvement will increase the variable cost by RM15.00 per bottle. The management believes that the improvement to the juice, along with increased advertising costing RM100,000 will boost sales by 25%. c) Besides the production of Bestari Juice, the company plans to produce and sell a new product known as Main Lazat Juice can be sold at RM85.00 per bottle. In order to produce Main Lazat Juice, the company has to buy a new machine costing RM30,000 which would last for 5 years. Miscellaneous expenses for the production are expected to increase by RM15,375 per annum. Other costs are estimated to remain constant and to be shared by both products. The sales of Main Lazat Juice are expected to be 3,000 bottles per annum. Advise whether the company should proceed with the plan with regards to the following matters: i. Break-even point (in units and value) for each product 11. Net profit proposed level

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