Question
Mesra Alam Sdn. Bhd. produces a single product. The results of the company's operations for a typical month are summarized in contribution format as follows:
Mesra Alam Sdn. Bhd. produces a single product. The results of the company's operations for a typical month are summarized in contribution format as follows:
Sales
RM540,000
Variable expenses..........
360,000
Contribution margin.......
180,000
Fixed expenses...............
120,000
Net operating income.....
RM60,000
The company produced and sold 120,000 kilograms of product during the month. There was no beginning or ending inventories.
Required:
(a) Given the present situation, compute:
i.The break-even sales in kilograms.
ii.The break-even sales in dollars.
iii.The sales in kilograms that would be required to produce net operating income of RM 90,000.
iv.The margin of safety in dollars.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started