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PR 8-6 Syarikat Perabut Rimba is operating at almost 100% capacity. The company expects sales to increase by 40% in 2018 . To satisfy the demand for its products, the company is considering two alternatives: - The first alternative would increase fixed costs by 30% but not affect variable costs. - The second alternative would not affect fixed costs but would increase variable costs to 70% of the existing selling price of the company's product. Chapter 8 Cost Behavior and Cost-Volume-Profit Analysis 40: Syarikat Perabut Rimba's income statement for 2017 is as follows: Instructions 1. Determine the break-even point in sales Ringgit Malaysia for 2018 under the first alternative. 2. Determine the break-even point in sales Ringgit Malaysia for 2018 under the second alternative. 3. Determine projected income before taxes for 2018 under each of the alternatives. 4. Which alternative would you recommend? Why? Hints: (a) Break-even point: RM772,200