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QUESTION 1 Farm Best Sdn Bhd manufactures and sells bottled fresh fruit juice. The information on the company's operation in 2018 is as follows: Sales
QUESTION 1 Farm Best Sdn Bhd manufactures and sells bottled fresh fruit juice. The information on the company's operation in 2018 is as follows: Sales RM2,500,000 (1,000,000 bottles) Fixed costs: RM40,000 Maintenance RM25,000 Wages RM25,000 Travelling expenses RM20,000 Rent Variable costs: Raw materials Labour Overhead RM800,000 RM500,000 RM300,000 Sales commission is 4% of sales REQUIRED: a. How many bottles of fruit juice will have to be sold in order to break even? b. If the targeted profit is RM150.000 how many bottles need to be sold? c. What should be the selling price to achieve a net profit of RM60,000 from the sales of 200.000 bottles per year? d. If the fixed costs increase by RM30.000 in 2019 and other costs remain unchanged, how many additional bottles would need to be sold in order to retain the same amount of profit as in 2018
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