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Q2. Bersatu Manufacturing Bhd. sells two types of products, Bag and shirt. The management accountant has prepared the following information for both products: Product Selling
Q2. Bersatu Manufacturing Bhd. sells two types of products, Bag and shirt. The management accountant has prepared the following information for both products: Product Selling Price Variable Sales Unit (RM) Cost (RM) (Units) Bag 20 10 6,000 Shirt 15 6 4.000 Fixed cost is RM 60,000 per month. Required: (a) Determine the break-even point based on the average contribution margin per unit for Bersatu Manufacturing Bhd. and calculate the break-even point in units and the value for Bag and Shirt. (5 marks) (b) How does activity-based management help service industry to reduce costs and become more efficient? (7 marks)
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