COST AND MANAGEMENT ACCOUNTING

Question $2$

The Mustaqim Company developed the following information for its products:

Selling price

RM$55\mathrm{.}00$

Variable cost

RM$45\mathrm{.}00$

Fixed production overhead

RM$15,000$

Fixed administration cost

RM$50,000$

Unit sold

$10,000$ units

Required:

a$)$ Calculate the contribution per unit.

$(4$ marks$)$

b$)$ Calculate the contribution ratio.

$(4$ marks$)$

c$)$ Compute the break$-$even point in units and RM$.$

$(8$ marks$)$

d$)$ What is the new break$-$even point in units if the company wants to earn a profit of RM$70,000.$

$(5$ marks$)$

e$)$ Calculate the margin of safety in units and RM$.$

$(4$ marks$)$

$($Total: $25$ Marks$)$