Happy Shine Home Sdn Bed CHHSB) is a manufacturer of a special household cleaning product. It employs the services of a specialist sales company, Fly Media Sdn Bhd (FMSB) to undertake its sales and marketing activities. Fly Modia Sdn Bhd receives a Cortimission of 6% on HHSB's sales for providing this service. The following budgeted income statement has been prepared in respect of the forthcoming financial year. Happy Shine Home Sdn Bhd Budgeted Income Statement RM Sales 100,000 units 1,600,000 Cost of goods sold Direct materials 250,000 Direct labour 146,000 Manufacturing overhead costs 200,000 (596.000) Gross Profit 1.004000 Selling and Distribution Costs Commission - Fly Media Sdn Bhd 96,000 Distribution costs 110,000 (2060) Fixed administration costs (110,000) Budgeted Profit 688.000 RM Management at HHSB is currently considering discontinuing the arrangement with FMSB and employing an in-house sales and marketing team instead. The management accountant has identified the costs associated with this option. It would be necessary to employ two sales representatives, each of whom would receive a basic monthly salary of RM1,800. These sales representatives would also receive a commission of 4% on sales achieved. HHSB would also have to spend an additional RM6,000 per annum on advertising if it employs its own in-house sales and marketing team The management accountant his identified further information relating to HHSB costs structure as follows 1. Both direct material and direct labour are variable costs 2 The manufacturing overhead costs contain 70% fixed manufacturing overhead 3 Variable distribution costs is 3% of sales value (RM) Page 2 of 9 MF Sweder 2002 Required: a) Calculate the break-even units and sales value for the forthcoming financial year if HHSB continues to use FMSB's services [14 marks) (b) IHHSB decided to employ its own in-house sales and marketing cam Calculate the breakeven sales units and sales value for the forthcoming financial year