Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I need the answer as soon as possible QUESTION 1 ABC Sdn Bhd manufactures and sells a supplement product called Kekanda. The selling price of
I need the answer as soon as possible
QUESTION 1 ABC Sdn Bhd manufactures and sells a supplement product called "Kekanda". The selling price of Kekanda is RM40 per unit. The variable costs incurred in producirg Kekanda are RM15, and total fixed costs are RM550,000 per year. During the year, the actual sales units of Kekanda are 70,000 units. Required: a) Determine the break-even points and margin of safety both in units and value (RM). Explain the figures obtained. (5 marks) b) Determine the sales volume (units) to be sold to achieve a target profit of RM1,500,000 per year. (2 marks) c) Determine the selling price if the company wanted to produce and sell 100,000 units of Kekanda each year and achieve a target profit of RM1,500,000. (3 marks) d) If variables costs per unit is increased to RM20, can the company's break-even at 22,000 units per yearStep 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