MA 2 : COST VOLUME PROFIT ANALYSIS

The following information has been extracted from Statement of Comprehensive Income of Hyped Sdn. Bhd. for the year ended 31 December 201 Q. Sales Less: Variable Cost Contribution Ma in Less: Fixed Cost Net Income 36.000 The product has been selling at RM12 per unit. There was no beginning or ending inventories. Required: (a) Calculate company's break-even point in units sold and in value. (8 marks) (b) Calculate total variable expenses at the break-even point. (2 marks) to) Determine the number of units to be sold if the company wants to earn a target prot of RM?.200. (4 marks) (d) The sales manager propose that an increase of RM6,000 in advertising expenses and an increase of RM1 per unit in direct labour cost would increase sales by 5.000 units. Determine whether the company should accept or reject the proposal. {Please show the calculation and the effect on the net prot)