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please d. JYZ Sdn Bhd plans to produce and sell Soft Jeans as an addition to the current product. The owner has estimated that the
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d. JYZ Sdn Bhd plans to produce and sell Soft Jeans as an addition to the current product. The owner has estimated that the variable cost would be RM60.00 per pair and each pair of Soft Jeans can be sold at RM100.00. With the production of soft jean, JYZ Sdn Bhd has to hire another two tailors who will be paid a fixed salary of RM5,000 per month each. A new sewing machine also needs to be bought at cost RM300,000 which could last for 5 years with no salvage value. Other costs are estimated to remain constant and to be shared by both products. The new sales for both products are expected to be 80,000 pairs per annum with the sales mix of 60% for denim slack and 40% for Soft Jeans. i. Determine the break-event points in units and value for each denim slack and soft jean. ii. At the proposed level, advise the management whether they should introduce the Soft Jeans or not. Clearly show the profit figure. (10 marks) Step by Step Solution
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