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how to explain MOS for c QUESTION 5 (15 Marks) Arina Carpert Expert produces TWO (2) types of carpet cleaners, the Shiny and Smoother. The

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how to explain MOS for c

QUESTION 5 (15 Marks) Arina Carpert Expert produces TWO (2) types of carpet cleaners, the Shiny and Smoother. The data for both of the two machines is as follows: Product Shiny Smoother Units Sold 18,000 4,500 Unit Selling Price (RM) 80 140 Unit Variable Cost (RM) 65 100 Sales Mix 80% 20% 13100% Total fixed costs to manufacture both products are RM400,000 per year. Required: a) Calculate the breakeven point in units for each product, assuming the sales mix remains constant. Unit cm = Unit sp - Unit vc (7 marks) cm ratio unit cm / unit sp b) Determine how many units of each product would be sold if Arina Carpet Expert expected a before-tax net profit of RM40,000. (4 marks) Determine the safety margin of each product and explain the meanings of the figures that you calculate. (4 marks) margin of safety (shing) Actual @ Expected sales Breakeven point in doller sales = RM 1600 000 - RM 14 12000 = RM 128000 = RM 400 000 - RM 368 000 margin of safety (smoother) = RM 3000

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