JYZ Sdn Bhd is a producer of new brand denim slack for local market. The denim slack used a brand name 'JYZ'. For the year 2021, the company managed to sell 60,000 pairs of this product at RM75.00 per pair. The following information pertaining to a year period is furnished by its owner for performance evaluation and decision making:

	RM
Denim cloth	15.00 per pair
Direct labor	12.00 per pair
Variable production overhead	8.00 per pair
Variable selling expense	8.00 per pair
Fixed production overhead	540,000 per annum
Fixed selling expense	180,000 per annum

The owner is now considering a few alternatives for future expansion and comes to see you for advice.

Required:

You are to advise him on the following matters independently.

a.At the current operating level, calculate the following:

i.Beak-event points in units and value ii. Margin of safety in units and value

b.To boost sales, the marketing manager suggested a more aggressive promotional campaign to be carried out. The campaign would cost RM80,000 per annum. As a result, the demand for 'JYZ' increases by 10%. Determine the following:

i.New Break-event points in units ii.The new net profit figure

c.Due to the increase in import duty of the cloths, the cost of denim clothes has increased by 15%. Compute the new selling price if the current contribution sales ratio remains constant (Note: use two decimal places for the ratio).

d. JYZ Sdn Bhd plans to produce and sell Soft Jeans as an addition to the current product. The owner has estimated that the variable cost would be RM60.00 per pair and each pair of Soft Jeans can be sold at RM100.00. With the production of soft jean, JYZ Sdn Bhd has to hire another two tailors who will be paid a fixed salary of RM5,000 per month each. A new sewing machine also needs to be bought at cost RM300,000 which could last for 5 years with no salvage value. Other costs are estimated to remain constant and to be shared by both products. The new sales for both products are expected to be 80,000 pairs per annum with the sales mix of 60% for denim slack and 40% for Soft Jeans.

i.Determine the break-event points in units and value for each denim slack and soft jean. ii. At the proposed level, advise the management whether they should introduce the Soft Jeans or not. Clearly show the profit figure.