Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

f. Refer to the original data. Aisyah currently has two staff helping her. Due to more customers making the order through the electronic commerce platform,

image text in transcribed

f. Refer to the original data. Aisyah currently has two staff helping her. Due to more customers making the order through the electronic commerce platform, she needs to hire a new staff. It will cost her an additional RM9,000 per year. She believes that the change would increase annual sales by RM20,000. Should she hire the new staff? (4 marks) g. Refer to the original data. During the first year, the shop only sold 4,500 pieces of tee shirts and reported the following operating results: Sales (4,500 units @ RM20) RM90,000 Variable cost (4,500 units @ RM8) 36,000 Contribution margin 54,000 Fixed cost 30,000 Net operating income RM24,000 i. Calculate the degree of operating leverage. (2 marks) ii. Aisyah is confident that with an ecommerce platform, her customers will come from all over the world. Therefore she can increase sales by 15% next year. Using the degree of operating leverage, calculate the expected percentage increase in net operating income and also the total net operating income next year. (3 marks) Grand Total (25 Marks)

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

Public Sector Accounting

Authors: Rowan Jones, Maurice Pendlebury

6th Edition

0273720368, 9780273720362

More Books

Students also viewed these Accounting questions

Question

12. What are their values? (ethical stance in society)

Answered: 1 week ago