Due to pandemic outbreak, people do not travel as frequently as before. This turmoil had brought down the sales for Comfy Fly Sdn Bhd that manufactures 3 comfortable flying-seat products for passengers which known as anti-pressure sock, massage eyescover and comfortable headrest. The demand for the products is diminishing and the sales manager forecasts that the coming year sales volume will be 10% less than those of the current year. Sock, eyescover and headrest can be sold for RM50, RM60 and RM55 respectively. The sock and eyescover demand are still steadily forecasted as people may still use them at other occasions rather than in the cabin. However, headrest sales are so vulnerable during the off- flying season. Due to the decrease number of demand, the company is planning to shut down the production of headrest. The summarized income statement for year 2020 is as follows: Sock 200,000 Eyescover 600,000 Headrest 275,000 120,000 80,000 39,000 24,000 24,000 30,000 83,000 65,000 70,000 37,500 42,000 18,000 107,500 100,500 234,500 Sales Less production costs: Direct material Direct labour Variable production overhead Fixed production overhead Gross profit Less other costs: Fixed administrative overhead Variable selling overhead Fixed selling overhead Head office cost (apportioned based on sales value) Net Profit 13,000 16,000 17,000 55,000 10,000 25,500 14,800 20,800 18,500 4,930 14,791 6,779 34,270 126,909 46,721 Additional information: 1. If the production of headrest is shut down the fixed production overhead and fixed selling overhead will be eliminated. 2. The labours of headrest will be given a compensation amounted to RM15,000 upon closing down. 4. If any of the company's products is to be eliminated, the other products will share the fixed administrative overhead of the terminated product equally. 3. Closing down cost of plant and machineries is expected to be RM5,800. Required: a Calculate the contribution per unit for each of the products. (4 marks) b. i. Construct the Revised Statement of Profit or Loss for the company by using marginal costing approach if the production of headrest is shut down for next year. (10 marks) ii. Recommend to the company whether they should shut down the production of headrest based on your answer in part (b)(i) above. (2 marks) State FOUR (4) qualitative factors that should be considered before a company decides to terminate one of its products. (4 marks) (Total: 20 marks) c