CVP QUESTIONS Profit Sdn. Bhd. (PSB) manufactures a single product. The budgets prepared for next year includes the following information: RM Item Fixed costs per annum Selling price per unit Direct materials cost per unit Direct labour cost per unit Variable overhead cost per unit 100 000.00 47.00 6.00 8.00 8.00 PSB currently sells 8000 units of its product. Required: I Calculate the break even point in RM and units. II. Calculate the number of units PSB must sell to obtain RM 30 000 profit. lil. The marketing manager decided to reduce advertising by RM10 000. The production manager decided to use a new kind of material. The cost of the material is 10% cheaper than before. Calculate the expected profit. iv. A notice is received informing machinery rental increase by RM 8 000 per annum. Calculate the additional units must be sold to meet the increase without any change in the profit obtained from the previous period V. The general manager believes that an additional advertising expense of RM10 000 will generate a 10% increase in the numbers of units sold. Determine whether the advertising expense should be increased. State your reasons vi. Explain four (4) asumptions of the cost-volumeprofit analysis