• Moon Bright Sdn. Bhd. is a manufacturer of dish cleaners. The following figures show the cost per unit of production based upon an annual production and sales of 20,000 units:

  RM

  Direct materials 80

  Direct labour (variable) 40

  Variable overhead 20

  Fixed overhead 15

  Selling price 200

  1. Calculate the breakeven point, in units and in value

  A.

  5,000 units, RM1,000,000

  B.

  2,812.50 units, RM562,500

  C.

  4,500 units, RM900,000

  D.

  None of the above

2.

Determine the margin of safety in units and in value

A.

15,000 units, RM3,000,000

B.

3,750 units, RM750,000

C.

5,000 units, RM1,000,000

D.

None of the above

3.

Calculate the profit-volume ratio and indicate what it means.

A.

30% of every RM1 sales revenue becomes profit, i.e. RM0.30

B.

30% of total units produced become profit

C.

30% of each unit produced becomes profit

D.

None of the above

4.

Given that there is a sudden extra fixed cost of RM25,000, how many extra units does the company need to sell?

A.

Close to 417 units

B.

Close to 4,250 units

C.

Close to 3,312.50 units

D.

None of the above