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Case Study Analysis Instruction: This section consists of three ( 3 ) main questions. Please answer ALL questions by using the answer template ( Excel
Case Study Analysis
Instruction:
This section consists of three main questions.
Please answer ALL questions by using the answer template Excel Format provided.
Please submit you answer script in Excel Format.
Total marks are
Question
Portrait Imaging Company is considering introducing a new video camera. Its selling price is projected to be
RM per unit. Variable manufacturing costs are estimated to be RM per unit. Variable selling costs
are of sales ringgit. The company expects the annual fixed manufacturing costs for the new camera to
be
a Compute Portrait Imaging's contribution margin per unit and contribution margin ratio.
marks
b Determine the number of units Portrait Imaging must sell to break even.
marks
c Portrait Imaging is considering a design modification that would reduce the variable cost of the
camera by RM per unit. Explain whether this change will cause Portrait Imaging's breakeven
point to increase or decrease when compared to the initial plans. Please show any changes in the
new costs in your calculation and analysis to reflect this modification.
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