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CVP - MANAGERIAL ACCOUNTING Nadia Consultancy runs a training centre in Puchcng. In 2020. the rm charges RM230 per participant. The estimated xed cost of
CVP - MANAGERIAL ACCOUNTING
Nadia Consultancy runs a training centre in Puchcng. In 2020. the rm charges RM230 per participant. The estimated xed cost of Nadia Consultancy for the period is RM55.000. The operating cost for each participant includes printed materials RMED, stationery RMSD. and refreshments RM40. In 2020 Nadia Consultancy had a net loss of RM5.000 due to low number of participants. Nadia Consultancy expects per unit data and total xed cost to be the same in 2021. Nadia Consultancy has set a goal of earning net income of RM5.000 in 2021. Required: As the accountant of Nadia Consultancy. compute the following gures: (a) The number of participants trained in 2020. {6 marks) (b) Calculate the break-even point in terms of participants in 2020. {4 marks) (c) Compute the number of participants that would have to be trained in 2021 to reach n'n's desired net income level. {4 marks) (d) Assume that the Nadia Consultancy train the same number of participants in 2021 as they did in 2020. What would the fees have to be charged in order to reach the targeted net income? {6 marks)Step by Step Solution
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