O X - X D RIDE CH 10 CH 6.pdf X D 17 15.pdf X PDE Ch 10, 11.pdf X DDE X_9869379.pdf X aDE 37150453.pdf X + zwe Friend @ File | C:/Users/zweya/Downloads/Documents/37150453.pdf 8 .. . 2:56 activity of 6 4:03 Submission date: 19 November 2018 Jacob 4 hr HAPPEN . HEIZE Question 1 (25 marks) SEE ALL poow ep Permata Sdn Bhd manufactures and sells its single Product X through manufacturer agents. The agents are paid a commission of 20% of the selling price. In the coming financial year, the sales agents commission is expected to increase. The management of the company feels that the demand from the agent has been too much. The company sells 3,000 units during the year. The manufacturing capacity of the company's facilities is 6,000 units per year. The company's statement of profit and loss for the year ended 31 December 2017 is as follows: Permata Sdn Bhd Statement of profit and loss for the year ended 31 December 2017 RM Sales 900,000 elf I Can't Even Be Myse... Manufacturing costs: Variable 315,000 23:59 Fixed overhead 100,000 415,000 Gross Margin 485,000 Selling and administrative expenses Commissions 180,000 Fixed marketing expenses 110,000 SEE ALL Fixed administrative expenses 40,000 330,000 Operating income 155,000 OX Less: Fixed financial expenses 1,000 Net income 154,000 16/ (J) qos BUY NOW The management of the company has asked the marketing manager to estimate the cost of employing its own sales force. The estimated additional cost of employing its own sales force is as follows: The additional cost consists of the sales personnel salaries which are exclusive of the sales commission. The sales personnel will receive a commission of 15% of the selling price in addition to their salary. Type here to search A 12:10 AM 82 F Rain showers 7/7/2021 EAx c GetHDme-wm'k x + [D | @ CH1DCH 6.pd1 x | @ 171542;" x | @ Ch10.11.pdf x | @ x,9969379.pdt x] @ 37150453de x + 7 D X G (D File I C:/User5/zweya/DownlDads/DocumentS/S50453.pdf {a 0 {'5 @ R otQ 7+QEllCBlA\"|VvaQl@ElF)lfBQdocx Estimated annual cost of employing a company sales force ' 2 RM ME "I Sales personnel 50,000 Travel and entertainment 20,000 Fixed marketing cost M 5: Total 10.0.1100 Required: a. Calculate the company's break-even volume in units and sales value for the year ended 31 December 2017, (7 marks) 1), Calculate the break-even volume and sales values for the year ended 2018 if the company employs its own sales force, (3 marks) c. Pennata Sdn Ehd has been planning for years to expand its market to other countries. The company's potential customers in China and India have offered to purchase 1,600 and 1,400 unis at RM250 and RM280 respectively, Assuming that all of the company's costs would be at the same level and same rate as in 2017 but employing its own sales force, what operating income would the company earn tor the year ended 2018 if it accepts these orders and rejects some business horn regular customers so as to not exceed capacity? (10 marks)