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Plz show maturity in answers and relate to current situations to answer question (not less than 300 words) as followed: QUESTION 4 Anita Consumer Industries
Plz show maturity in answers and relate to current situations to answer question (not less than 300 words) as followed:
QUESTION 4 Anita Consumer Industries Sdn Bd produces a single product. The following are the cost data of its product: Selling price per unit RM40 Variable cost per unit RM24 Fixed cost per year RM 16,000 Answer the following questions: Define break-even point. (2 marks) ii. Break even in sales and unit. (2 marks) ii. Calculate sales to earn profit of RM20,000. (2 marks) iv. Calculate profit at sales of RM60,000. (2 marks) Calculate the new breakeven in sales and unit, if sale price is reduced by 10%. (2 marks) b) Zoha has a land of 20 acres in Nilai, Negeri Sembilan. She has asked her CEO to evaluate five (5) business proposals. Based on the below table, evaluate each of the project potential using payback period method. Annual Net Cash Flows (in RM Thousand) Proposal A Proposal B Proposal C Proposal D Proposal $10.000 $10,000 $10.000 $10,000 $10,000 Initial Investment Project year 1 2 3 4 2,000 2.000 2,000 2,000 2,000 2,000 7.000 (2.000) 1.000 2.000 2.000 1.000 2.000 7,000 2,000 6,000 2.00 2,000 6.000 2.000 3.000 4,000 1.000 1.000 1.000 500 5 6 7 2.000 B i. Evaluate each of the proposal? (3 marks) ii. Do you think project E is better than project C? Why? (3 marks) i. Which project should we propose to Zoha? Justify your answer. (3 marks) ix. If Zoha choose project C, what is her business strategy? Justify your answer. (3 marks) Explain the drawbacks of payback period method. 13 marks) Step by Step Solution
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