please answer questions a,b&c. tq

. Glow Skinz Industries is a newly established skincare manufacturing company based in Shah Alam, Selangor. At the moment, the company is producing only one product called Serum X. So far, the product is well accepted by the customers since it is graded as a premium product but sold at a reasonable price. The following information for Serum X has been provided by the management accountant. RM100 Selling price per unit Variable production costs per unit: Direct material Direct labour Direct expense RM24 RM22 RM10 Fixed production overhead Variable selling expenses Fixed selling expenses Variable administrative expenses Fixed administrative expenses RM1,000,000 10% of selling price per unit RM800,000 RM4.00 per unit RM600,000 For the year ended 31 December 2016, Glow Skinz plans to produce and sell 100,000 units of Serum X. Required: a Based on the information provided above, prepare a Marginal Costing Income Statement for the year ended 31 December 2016. (4 marks) b Calculate the followings: i. ii. INI BEP in units BEP in RM MOS in units (6 marks) Hak Cipta Universiti Teknologi MARA CONFIDENTIAL CONFIDENTIAL AC/DEC 2015/ACC516 C The owner of Glow Skinz is thinking on how to improve the profitability of the company for the coming year. There are two options available to be considered Option A The selling price will be reduced to RM90 per unit. This will result in the budgeted sales quantity to increase by 35,000 units. Direct material cost is also expected to be reduced by RM5 per unit due to change of supplier. The variable selling overhead is set to be RM10 per unit. Option B To boost the sales quantity, the company planned to spend RM100,000 for its advertising expenses. This will result in the budgeted sales quantity to increase by 25% from the current sales level. In addition, the variable selling expenses is expected to change to RM11 per unit. Required: Decide which of the two options would result in better profitability for Glow Skinz