Norman Berhad sells two products; product X and product Y. The information about sales price, variable expenses and total fixed expenses is given below:

	Product X	Product Y
Selling price per unit	RM50	RM100
Variable expenses per unit	RM30	RM40

The total monthly fixed expenses of the company are RM 270,000. Norman Berhad wants to generate a sales revenue of RM 1,000,000 in the next month. To obtain this goal the company has the following options:

Option 1: Sell 6,000 units of product X and 7,000 units of product Y. Option 2: Sell 14,000 units of product X and 3,000 units of product Y.

Required:

1. Prepare contribution margin income statement and calculate break-even point in units and sales if Norman Berhad decides to select option 1.

10. Marks)

2. Prepare contribution margin income statement and calculate break-even point in units and sales if Norman Berhad decides to select option 2.

10. marks)

3. Whichever is the better option, (1) or (2)? Explain.

(5 marks)