King Queen Sdn Bhd is a manufacturer of sleeping bags for backpackers. The sleeping bags are sold for RM 0.50 per bag. For the year 2019, management has estimated the following revenue and costs:

(i) Prepare a CVP income statement for 2019 based on the estimates above.

(ii) Compute the break even point in units.

(iii)How many units they should produce if they have Target profit of RM45,000?

(iv)Explain the meaning of contribution margin and how cost-volume-profit analysis can assist management in making decision.

King Queen Sdn Bhd is a manufacturer of sleeping bags for backpackers. The sleeping bags are sold for RM 0.50 per bag. For the year 2019, management has estimated the following revenue and costs: ACC 2211 (F) / Page 6 of 6 Sales Direct Materials Direct Labor Manufacturing overhead - variable Manufacturing overhead - fixed Selling expenses - variable Selling expenses - fixed Administrative expenses - variable Administrative expenses - fixed RM 1,800,000 430,000 360,000 380,000 280,000 70,000 65,000 20,000 60,000