QUESTION 2 a) Statement of profit or loss and other comprehensive income for Badrul Machine Bhd. for 2019 appears below. BADRUL MACHINE BHD. Statement of profit or loss and other comprehensive income For the Year Ended December 31, 2019 Sales (40,000 units) RM1,000,000 Variable expenses 700.000 Contribution margin 300.000 Fixed expenses 360.000 Net income (los) RM 60.000 Required: Answer the following independent questions and show computations using the contribution margin technique to support your answers: i. What was the company's break-even point in sales (RM) in 2019? (2 marks) ii. How many additional units would the company have had to sell in 2019 in order to earn net income of RM45,000? (3 marks) iii. If the company is able to reduce variable costs by RM2.50 per unit in 2020 and other costs and unit revenues remain unchanged, how many units will the company have to sell in order to earn a net income of RM45,000? (5 marks) b) Corrie Enterprise manufactured 6,000 units of a component part that is used in its product and incurred the following costs: Direct materials RM35,000 Direct labour 15,000 Variable manufacturing overhead 10.000 Fixed manufacturing overhead 20.000 RM80.000 Another company has offered to sell the same component part to the company for RM13 per unit. The fixed manufacturing overhead consists mainly of depreciation on the equipment used to manufacture the part and would not be reduced if the component part was purchased from the outside firm. If the component part is purchased from the outside firm, Corrie Enterprise has the opportunity to use the factory equipment to produce another product which is estimated to have a contribution margin of RM22,000. Required: Prepare an incremental analysis report for Corrie Enterprise and comment on whether Corrie Enterprise should make or buy the component part. (10 marks) TOTAL: 20 MARKS Continued