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project management and finance subject a) Determine if each of the following would be considered a fixed cost or a variable cost. Explain your answer.
project management and finance subject
a) Determine if each of the following would be considered a fixed cost or a variable cost. Explain your answer. i) The property taxes for the year are 5% of the value of the building. (2 marks) ii) The direct materials used for packaging finished goods cost is RM2 per finished good. (2 marks) iii) Sketch a graph to show cost versus volume which represents the type of costs in Question 4 a) i) and ii) above. (3 marks) 1 Add file b) Printrite is a specialised manufacturer in the assembly of print modules. The projected after tax net income for the current year is RM1,200,000 based on a sales volume of 400,000 print modules. Printrite has been selling the print modules at RM32 each. The variable costs consist of the RM18 per unit purchase price charged by the vendor for the printer head and a handling cost of RM4 per unit. Printrite's annual fixed costs are RM2,000,000. Printrite's income tax rate is 40%. Required: i) Find Printrite's BEP for the current year in unit of sales? And in sales revenue? (4 marks) ii) Find the after tax income for the current year if a sales strategy has been planned to boost an increase of 10% in the RM18 per unit purchase price charged by the vendor for the printer head and a handling cost of RM4 per unit. Printrite's annual fixed costs are RM2,000,000. Printrite's income tax rate is 40%. Required: i) Find Printrite's BEP for the current year in unit of sales? And in sales revenue? (4 marks) ii) Find the after tax income for the current year if a sales strategy has been planned to boost an increase of 10% in sales volume? (4 marks) iii) Find the Ringgit sales in the coming year to maintain the same after tax net income as projected for the current year stated in Question 4 b) if unit selling price remains at RM32 and management expects that the unit purchase price of the printer head will increase by 20%, while the handling cost and components of fixed cost remain unchanged. (5 marks) (Total: 20 marks]
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