Question 1

The following were extracted from the books of Tasik Bhd. for the month of October 2019: Particulars Amount (RM) Amount (RM) Sales Revenue 550,000 Less: Cost of Sales Materials 165,000 Labour 132,000 Variable overheads 88,000 Fixed Overheads 90,000 475,000 -------------------- Profits 75,000 ============ Sales Quantity: 11,000 units Required:

a. Calculate the number of units to be sold whereby the company neither makes a profit nor a loss. (5 marks)

b. Calculate the required sales quantity to earn a 30% profit on the current sales revenue when all other things remain the same. (5 marks)

c. Calculate the selling price per unit when the number of units to break even is lowered by 20% under the present conditions. (5 marks)

d. State FIVE (5) assumptions when using break even analysis. (5 marks)