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QUESTION 2 (10 MARKS) Power Powder Company produces a single product. The results of the company's operations for a month are summarized in contribution
QUESTION 2 (10 MARKS) Power Powder Company produces a single product. The results of the company's operations for a month are summarized in contribution format as follows: Sales (-) Variable expenses Contribution margin (-) Fixed expenses Net operating income RM 540,000 (360 000) 180,000 (120 000 RM60,000 The company produced and sold 120,000 kilograms of product during the month. There were no beginning or ending inventories. Required: Given the present situation, compute: i. The break-even sales in kilograms. The break-even sales in RM. (2 marks) (2 marks) ii. The sales in kilograms that would be required to produce net operating income of RM70,000. iv. The margin of safety in RM. (3 marks) (3 marks)
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