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QUESHDN 4 {33 marks : 40 minutes} Syarikat Domi Sdn Bhd produces and sells two products. Do and Mi. It manufactures these products in separate

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QUESHDN 4 {33 marks : 40 minutes} Syarikat Domi Sdn Bhd produces and sells two products. Do and Mi. It manufactures these products in separate factories and markets them through different channeis. They have no shared costs. This year the company sold 120.000 units of each product. Sales and cost for each product follow: Product Do Product Mi Sales RM3.000.000 RM3.000.000 1i.r"ariable costs 1.300.000 600.000 Contribution margin 1.200.000 2.400.000 Fixed costs 600.000 1.800.000 Income before taxes 000.000 I000,000 Income taxes {35% rate} 210.000 210.000 Net income 390.000 390.000 Required: 1. Compute the break-even point in ringgit sales for each product. Which product gives a lower sales to get break-even? i 0 marks 1* 2. Assume that the company expects sales of each product to decline to 104.000 units next year with no change in the unit sales price. Prepare forecasted nancial results for next year following the format of the contribution margin income statement for each of the two products [assume a 35% tax rate. and that any loss before taxes yield a 35% tax sayings}. Which product gives a better income? 1: 0 marks 1' 3. Assume that the company expects sales of each product to increase to 100.000 units next year with no change in the unit sales price. Prepare forecasted nancial results for next year following the format of the contribution margin income statement for each of the two products [assume a 35% tax rate}. Which product gives a better income? {'3 marks 1 E." 1i]

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