Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

John Ltd manufactures and sells a single product. The following information is available for 2020: Production and sales units 5,000 RM per unit 20 2

image text in transcribed
John Ltd manufactures and sells a single product. The following information is available for 2020: Production and sales units 5,000 RM per unit 20 2 Selling price Direct material Direct labour Variable overhead - 2 Fixed overheads in total: Production Administration Selling RM 30,000 20,000 10,000 Required: (a) (b) (c) (d) (e) (f) Calculate the contribution / sales ratio. Calculate the break-even point in units and in sales value. Show in graphical method Calculate the margin of safety in percentage of sales. Calculate the sales value required to achieve a targeted profit of RM120,000. Calculate the likely profit or loss, should the sales volume be 3000 units Assume in year 2021 that selling price will decrease by 10% and variable costs will increase by 10%. Calculate the revised break-even point in units and in sales value

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting For Business Decisions

Authors: Colin Drury

2nd Edition

1861527705, 978-1861527707

Students also viewed these Accounting questions

Question

What is a cost object? Give some examples.

Answered: 1 week ago

Question

Draw a labelled diagram of the Dicot stem.

Answered: 1 week ago

Question

2. What appeals processes are open to this person?

Answered: 1 week ago

Question

4. How would you deal with the store manager?

Answered: 1 week ago