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HD Vision Bhd manufactures and sells televisions. Information on prices and other related costs are as follows: Selling price per television RM6,250 Variable cost per

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HD Vision Bhd manufactures and sells televisions. Information on prices and other related costs are as follows: Selling price per television RM6,250 Variable cost per unit Direct material Direct labour Manufacturing overhead Selling expenses RM 2,625 1,250 750 325 4,950 Total variable cost per unit Annual fixed cost RM Manufacturing overhead Selling and administrative 48,000,000 69,000,000 117,000,000 Total fixed costs Forecasted annual sales volume (120,000 units) Required: RM750,000,000 a) Calculate the break-even point (in RM and units) and the margin of safety (in (10 marks) percentage) for HD Vision Bhd. b) Compute the HD Vision Bhd required sales (in RM and Units) in order to earn an income of RM65,000,000. (6 marks) If the management of HD Vision Bhd estimates that direct labour costs will increase by i. How many units that the company needs to sell for the next year in order to reach (4 marks) c) eight percent next year its break-even point? ii. What is the product's new selling price per unit that should be charged to (2 marks) d) Explain what will happen to the company's break-even point if the sales price and unit (3 marks) maintain the contribution margin ratio? (round up to two decimal points). variable cost of the product increase by the same amount

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