Problem 1

PT DEF is a company which manufactures electronics equipment, one of them is Television. The company predicts that it can sell 300.000 television next year. Cost information regarding the company's operation for next year are as follows :

Sales price per Unit $ 9.000

Variable cost per unit :

- Direct Material $ 1.500

- Direct Labor $ 1.000

- Variable FOH $ 1.500

- Variable SGA $ 1.000

Total Fixed Costs

- Total Fixed FOH $ 800.000.000

- Total Fixed SGA $ 200.000.000

Questions :

a. Calculate the BEP in unit

b. What is the company's profit if it can sell all of the TV as predicted

c. Prepare the income statement to prove that your calculation in point b is correct

d. What is the company's operating leverage based on the question in point b and what

does it mean?

e. How many units of TV that the company has to sell if it wants to reach a profit of $

300.000.000 (assume no tax)

f. If the company's maximum capacity is only 300.000 units, what is the sales price

increase so that the company still can achieve its targeted profit in point e (assume no

tax)

g. Repeat question point e, if there is a tax rate of 25% and the company wants to achieve a

profit of $ 300.000.000 after tax

h. What is the company's margin of safety

i. Assume the company wants to increase the quality of the TV. It increases the DM cost

by $1.500. What selling price per unit of product must it charge to cover the increased DM cost to maintain contribution margin ratio?

j. PT DEF is so innovative that he also decides to produce new LED TV and the contribution margin for the that product is Rp 1.000 per unit. If the predicted unit sales for next year will be 60% from LED TV and the rest from old model TV, calculate the amount of old model TV and new LED TV that the company has to sell in order to receive a profit of $ 300.000.000 after tax (tax rate 25%)

Problem 2

PT Indo Maju sells its products at a price of Rp. 60,000 per unit. The following is information about variable costs per unit: 

Direct raw materials 16,000 Direct labor of 12,000 Overhead costs 7,000 Total variable manufacturing costs 35,000 Selling costs of IDR 7,000 Total variable costs IDR 42,000 

Fixed costs per year of 720,000,000. a. In order to break even (break even), how many products must PT Indomaju have to sell successfully every year? b. How many units must be produced in order to generate profit before tax of 10% of the value sales. c. If the variable manufacturing cost has increased by 20% and the selling cost becomes 8,000 while the other numbers are assumed to be unchanged, how much is thatmust be generated to break even