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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

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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

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