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Jus A Jug sells a variety of beverages like fruit juices, vegetable-based and green juices for RM15 each jug. The variable expenses are RM10 per
Jus A Jug sells a variety of beverages like fruit juices, vegetable-based and green juices for RM15 each jug. The variable expenses are RM10 per jug and the fixed costs are RM22,500 per month. The company sells 8,000 jugs per month. Required: (a) Prepare contribution margin income statements for current operating conditions showing contribution margin ratio. (6 marks) (b) Compute Break-even point in units. (2 marks) (c) What is the margin of safety? (3 marks) (d) If the company wants a target profit of RM200,000, how many units must they sell, and what is the dollar sales? (4 marks)
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