KINDLY HELP ME, VERY URGENT
The Board of Directors (BOD) of Mayu Sdn Bhd are concemed of their profits during this pandemic and the Finance Manager, Michael Lee has assigned you to prepare a detail working for supporting document to the BOD. There are a few options and he wanted you to prepare the working for these proposals. No recommendation and analysis are to be made The forecast of 31 October 2021 is as follows: Quantity to be produced and sold 320,000 Mayu Delights unit Sales revenue Direct Material-Molo Direct Skilled Labour Production Overhead Gross Profit Selling and Marketing Costs Net Profit for the year RM 000 18,000 6.000 3.000 3.000 6,000 2.200 3.800 The production overhead and selling and marketing overhead cost can be analysed into the following ratios of variable to five cements as below. Variable Cost Fived Cost Production Overhead Selling and Distribution Costs 2 3 It was agreed that RM2,000,000 is the minimum acceptable target net profit. Below are four alternatives that are being considered to meet this requirement Proposal Selling Price per Unit Variable cost per unit Fixed Cost (RM) (RM) (RM) Decrease of 8% No change No change No change No change RM140,000 Increase for production overhead No change Decrease of RM4 in Extra for direct material Advertising RM150,000 Increase of 10% Increase of RM in No change direct labour Note: Each proposal is to be camied out independently Required: (a) Determine the mumber of units of product required to meet the target net profit, The selling price and cost in the initial forecast (4 marks) Each alternative proposal 1 to 4 above (12 marks) (6) Tabulate the breakeven points (in units) for each of the fou (9 proposals separately. State the units. (8 marks) The finance manager is considering for additional information apart from breakeven point to support his decision making. Consequently, he asked you to find out about the proposal's murgin of safety. Justify wty margin of safety can be considered when making decision. (6 marks) [Total: 30 marks] The Board of Directors (BOD) of Mayu Sdn Bhd are concemed of their profits during this pandemic and the Finance Manager, Michael Lee has assigned you to prepare a detail working for supporting document to the BOD. There are a few options and he wanted you to prepare the working for these proposals. No recommendation and analysis are to be made The forecast of 31 October 2021 is as follows: Quantity to be produced and sold 320,000 Mayu Delights unit Sales revenue Direct Material-Molo Direct Skilled Labour Production Overhead Gross Profit Selling and Marketing Costs Net Profit for the year RM 000 18,000 6.000 3.000 3.000 6,000 2.200 3.800 The production overhead and selling and marketing overhead cost can be analysed into the following ratios of variable to five cements as below. Variable Cost Fived Cost Production Overhead Selling and Distribution Costs 2 3 It was agreed that RM2,000,000 is the minimum acceptable target net profit. Below are four alternatives that are being considered to meet this requirement Proposal Selling Price per Unit Variable cost per unit Fixed Cost (RM) (RM) (RM) Decrease of 8% No change No change No change No change RM140,000 Increase for production overhead No change Decrease of RM4 in Extra for direct material Advertising RM150,000 Increase of 10% Increase of RM in No change direct labour Note: Each proposal is to be camied out independently Required: (a) Determine the mumber of units of product required to meet the target net profit, The selling price and cost in the initial forecast (4 marks) Each alternative proposal 1 to 4 above (12 marks) (6) Tabulate the breakeven points (in units) for each of the fou (9 proposals separately. State the units. (8 marks) The finance manager is considering for additional information apart from breakeven point to support his decision making. Consequently, he asked you to find out about the proposal's murgin of safety. Justify wty margin of safety can be considered when making decision. (6 marks) [Total: 30 marks]
