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Canyon Sdn. Bhd. produces and sells egg tarts that are packed in a box. Each box comprises of six cups of egg tarts. The following
Canyon Sdn. Bhd. produces and sells egg tarts that are packed in a box. Each box comprises of six cups of egg tarts. The following data is available for the month June 2022: RM 10.50 Selling price per box Variable costs for the month: 4,250 Direct material Direct labour 2,890 Production overhead 2,550 2,040 Selling overhead Annual fixed costs 24,000 Estimated egg tarts to produce and sell in the month of June 2022 are 10,200 cups. Required: (a) Determine the break-even point in number of boxes and value for the month of June 2022. (6 marks) (b) Calculate the selling price per box if the company wants to produce and sell 18,000 cups of egg tarts in June 2022 and achieve a desired net profit of RM25,000. (4 marks) (c) Compute the margin of safety (MOS) in units and value for Canyon Sdn. Bhd
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