Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Delicious Butter has released a new cake called Pretty Sweety. Sales price of this cake is RM95. Management found that the cake is relatively

image text in transcribed

Delicious Butter has released a new cake called Pretty Sweety. Sales price of this cake is RM95. Management found that the cake is relatively slow for several reasons. Miss Alia, as management accountant, she is required by Chief Executive Officer to make short term planning. Some information has already been gathered to make her plans. Variable Costs Sales Commissions Other Variable Costs Purchased (unit) *Fixed costs amounted to RM20,500 Required: A. RM (per unit) 10 15 20 Compute the break-even point in RM and unit using contribution margin method. B. C. D. Compute total unit sold if a company's target profit is RM35000. Compute the break-even point in RM and unit if commission to agent have been increased to RM20. Explain whether or not this idea able to encourage sales. Compute Delicious Butter's net income if the company sells 2,500 units of cake. E. Compute Pretty Sweety"s operating leverage. F. If sales decline by 30%, what will be the impact on the Delicious Butter's net income? (Use operating leverage method to explain your answer)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Gail Fayerman

1st Canadian Edition

9781118774113, 1118774116, 111803791X, 978-1118037911

More Books

Students also viewed these Accounting questions

Question

Are proper test development procedures used in the design? _

Answered: 1 week ago

Question

Are the tests easy to administer?

Answered: 1 week ago