Question
Koko Disc Sdn Bhd (KDSB), manufactures and sells compact disc. Price and cost data are as follows: RM Selling price per unit 25.00 Variable cost
Koko Disc Sdn Bhd (KDSB), manufactures and sells compact disc. Price and cost data are as follows:
|
| RM |
| Selling price per unit | 25.00 |
|
|
|
| Variable cost per unit |
|
| Direct Material | 9.00 |
| Direct labour | 3.00 |
| Manufacturing Overhead | 2.00 |
| Selling Expenses | 1.00 |
| Total Variable Cost per unit | 15.00 |
|
|
|
| Annual fixed costs |
|
| Manufacturing Overhead | 192,000 |
| Selling and administrative costs | 276,000 |
| Total Fixed Costs | 468,000 |
|
|
|
| Forecasted annual sales volume (120,000 units) | 3,000,000 |
|
|
|
Required:
- Calculate KDSBs break-even points in units and in RM.
- How many units would KDSB have to sell in order to earn a net profit of RM300,000.
- Calculate KDSBs margin of safety in units and in RM.
- Management estimates that direct-labour costs will increase by 10% next year. How many units KDSB have to sell next year to reach the current break-even point.
- If KDSBs direct-labour costs do increase by 10%, calculate the new selling price that KDSB needs to charge in order to maintain the same contribution margin ratio as before.
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Crash Course Medical Research Audit And Teaching The Essentials For Career Success
Authors: Amit Kaura MSc BSc MB ChB MRCP AFHEA AMInstLM, Darrel Francis, Shreelata T Datta MD MRCOG LLM MBBS BSc, Philip Xiu MA MB BChir MRCP MRCGP MScClinEd FHEA MAcadMEd RCPathME
2nd Edition
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