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Nur Kasih Sdn Bhd manufactures and sells a single product. The following cost were incurred during the company's first operations: During the year, the company
Nur Kasih Sdn Bhd manufactures and sells a single product. The following cost were incurred during the company's first operations: During the year, the company produce 25,000 units and sold 20,000 units. The selling price of the company's product is RM50 per unit Required: a. Calculate the product cost per unit under absorption and variable costing (5 marks) b. Prepare the income statement for Nur Kasih Sdn Bhd using absorption and variable costing (10 marks) Gegar Berhad distributes a single product Riuh with a selling price of RM10. There were no beginning or ending inventories. The company's most recent monthly contribution format income statement is given as below: Required: a. Calculate the Gegar Berhad 's contribution margin ratio. ( 2 marks) b. Compute the break-even point (BEP) in units and sales value for Riuh. (2 marks) c. In view of an increasing demand for Riuh, the unit sales of the product is expected to be increased by 10 percent and the fixed expenses were expected to be reduced by RM2,000. Prepare a new income statement for Gegar Berhad in order to calculate the company's expected net operating income. (6 marks)
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