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Love Sdn Bhd manufactures dining tables for the local market. For 2020, sales is estimated at 10,000 units. The following information is obtained from the

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Love Sdn Bhd manufactures dining tables for the local market. For 2020, sales is estimated at 10,000 units. The following information is obtained from the 2020 budget file: Sale RM100,000 Cost Fixed Cost (RM) Variable (RM) Raw material 30000 Direct labour 20000 Overhead production 10000 15000 Sales and administration 11000 5000 Total Cost 21000 70000 RM91000 Estimated operating income RM 9000 If a company spends RM1,500 on newspaper advertising, sales is estimated to increase to 12,000 units. Do you agree with company suggestions? Prove it by calculation

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