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NUR Berhad is a company producing tables. After discussing with the marketing manager, the production manager planning to focus on producing a product named AFI.

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NUR Berhad is a company producing tables. After discussing with the marketing manager, the production manager planning to focus on producing a product named AFI. The marketing manager is observing on two states, Selangor and Pahang, the sales at both states is expected to be RM500,000 an RM810,000 respectively. Information related to the cost per unit of the production for both states are as follows: SELANGOR (RM) PAHANG (RM) Selling price 100 135 Direct material 40 45 Direct labour 10 15 Overhead 20 30 50% of the overhead in SELANGOR and PAHANG are fixed. b. Calculate the followings and show all your workings. i. The break-even point (in unit and sales value) for both states. ii. The margin of safety (in unit) for both states. ii. Advice to the management in which state should the company sell AFI. (10 marks) Marketing manager suggested the company should sell

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