Question
QUESTION 1 (25 MARKS) Ahmad Sdn Bhd makes clay pots. The following are the budget for the next financial period: Selling price per unit RM15
QUESTION 1 (25 MARKS) Ahmad Sdn Bhd makes clay pots. The following are the budget for the next financial period: Selling price per unit RM15 Variable cost per unit RM8 Fixed cost RM14,000 Fixed administration cost RM21,000 Sales 9,000 units
REQUIRED: (a) Calculate break-even point in units and value. (5 marks)
(b) Calculate the margin of safety in value and in units. (5 marks)
(c) If there is a 15 percent increase in the fixed cost per period, what will be the new break-even point. (7 marks)
(d) If there is a 15 percent increase in the selling price per unit and the fixed cost and the variable cost remains the same, what will be the new break-even point. (8 marks)
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