Question
Hanyut Sdn Bhd (HSB) produces a single product that sells for $300. Cost per unit consists of direct material $70, direct labour cost $50, variable
Hanyut Sdn Bhd (HSB) produces a single product that sells for $300. Cost per unit consists of direct material $70, direct labour cost $50, variable packaging cost $30, variable marketing $20 and variable selling costs $30. Fixed costs are $80,000 per annum. In 2018 HSB had a net loss of $30,000. HSB expects per unit data and total fixed cost to be the same in 2019. HSB has set a goal of earning net income of $30,000 in 2019.
Required: (a) Compute the unit sold in 2018. (b) Compute the breakeven point (unit and $) in 2019. (c) Compute the number of units that would have to be sold in 2019 to reach HSBs desired net income level. (d) Assume that the HSB sells the same number of units in 2019 as they did in 2018. What would the selling price have to be in order to reach the targeted net income of $30,000?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started