MA2 : COST VOLUME PROFIT ANALYSIS

\f. '-'I-"-" a. Calculate the break even In units, margin ct safety In units and net prot for the first all! months at the year 2017. {7 Marks) Puan Hajah Slit Aisyah believes thatto attain the sales targetin the year 2018, the company must incur the following additional costs: l. Advertising and distribution expenses of RMBOD and RM14+DDO respectively. ill Direct labour and direct material per unit will be increased by 2% and 5% respectively. tit. Selling price will be increased by 10%. Calculate the break even in units and expected net profit for the year 2018. [14 Marks) Calculate the targeted selling price; If the company expected to attain the net profit at RM850.000 in 2018. {3 Marks) Explain THREE {3) limitations of the break-even analysis. {5 Marks)