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PART A Hot Savory Sdn Bhd (HSSB), a manufacturer of waffle makers, has experienced a slow growth in sales over the past 2 to 3
PART A Hot Savory Sdn Bhd (HSSB), a manufacturer of waffle makers, has experienced a slow growth in sales over the past 2 to 3 years. Because of this, Encik Deen, the vice-president of sales believes that he needs an aggressive advertising campaign next year to boost the company's growth. In order to plan for next year, Puan Aliah, the accountant, prepared the following data for the current year. Variable cost per waffle maker: Direct materials Direct labour Variable overhead Fixed costs: RM14 50. RM13.50 RM6.00 Manufacturing Selling Administrative Selling Price per unit Expected sales (units) RM82,500 RM42,000 I RM356,000 RM67.00 30,000 3. What will be the breakeven point if the additional RM200,000 is spent on advertising? (3 marks) 4. If the additional RM200,000 for advertising next year, what is the sales level in units needed to equal the current year's operating profit at 30,000 units? (4 marks)
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