Question 1 Famous Sdn Bhd, which manufactures and sells skateboards and related accessories The company has provided you with the following information: Per unit (RM) Selling price 500 Direct materials 210 Direct labour 50 Variable overhead 40 Fixed overhead 10 For the financial year ended 31 December 2018, the production was 10,000 units. The production and fixed overheads were both based on full capacity. The following was recommended for the next financial year ended 31 December 2019. The output is to be increased to 16.000 units but additional fixed overheads of RM360,000 would be incurred. A premium of 20% would be paid for labour cost for any additional work. The supplier is willing to offer a bulk purchase discount of 10% on all materials purchased which exceed 15,000 units. Required: a. Calculate for the year ended 31 December 2018: The break-even point in units and value (RM). (4 marks) The net profit (3 marks) b. For the next financial year ended 31 December 2019, calculate The break-even point in units and value (RM) (6 marks) The sales units required to achieve a RM67,500 profit (3 marks) The net profit at 16.000 units. (3 marks) i. ii. 1. c. Break even analysis is often used by managers when planning the financial implications of producing and selling new products. Often when managers are competing for funds, they will be expected to produce reports relating to the new products, including the financial planning for that product. If managers are not held accountable for the reports submitted, discuss the implications and consequences of this (6 marks)