QUESTION 1

XYZ shop sells leather bags. The cost of each bag is comprised of the following: Selling price of RM1,000 and variable costs of RM 400. Total fixed costs for XYZ are RM90,000.

1. What is the contribution margin per dress?
2. What is the XYZs shop total profit when 200 bags are sold?
3. How many bags must XYZ shop sell to reach the breakeven point?

QUESTION 2

x ray Centre sells x ray for RM100. The unit variable cost per x ray is RM 50 plus a selling commission of 10%. Rental cost RM1,250 per month, while other fixed selling and administrative costs total RM 2,500.

1. What is the contribution margin per x ray?
2. What is the breakeven point in x ray?
3. Advice the Centre for ways to reduce a company's break-even point?