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(Question 1) Oceania Sdn. Bhd. manufactures and selles a product called Atlantic. For the year ended 30 April 2020, the company managed to produce and
(Question 1) Oceania Sdn. Bhd. manufactures and selles a product called Atlantic. For the year ended 30 April 2020, the company managed to produce and sell 30,000 unit of Atlantic. The following information relates to the production and sales of Atlantc for the year ended 30 April 2020: RM70 Selling price per unit Variable cost per unit: Direct material Direct labour Direct expenses Annual fixed cost RM20 RM 15 RM10 RM350,000 CONFIDENTIAL (b) The following changes are estimated for the year ended 30 April 2020: Increase in direct material to RM25 per unit. Increase in direct labour by RM4 per unit. Increase in direct expenses to RM13 per unit. Decrease in selling price to RM65. All other remain unchanged. Based on the new changes on the costs structurer of Atlantic, calculate the following: i. Break-even point in units and value for Atlantic. (5 marks) ii. Numbers of unit to be sold in order to achieve company's net profit by RM200,000
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