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Prestige Ltd. produces 3 products and has fixed costs of RM363,000 a year. Other data for the year are as follows: Selling price per unit
Prestige Ltd. produces 3 products and has fixed costs of RM363,000 a year. Other data for the year are as follows: Selling price per unit Variable cost per unit Relative sales mix A RM18 RM12 0.4 B RM12 RM7 0.3 RM36 RM27 0.3 Required: (i) Calculate the break-even point in units for each product individually. (6 marks) Determine how many units of each product must be sold in order to earn a net income of RM99,000. (6 marks) (ii) (iii) Explain any FOUR (4) assumptions in CVP analysis before we can use it effectively. (4 marks)
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