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QUESTION 2 State TWO (2) advantages and THREE (3) disadvantages of Net Present Value. (10 marks)QUESTION 3A company manufactures a single product. Budget and standard
QUESTION 2 State TWO (2) advantages and THREE (3) disadvantages of Net Present Value. (10 marks)QUESTION 3A company manufactures a single product. Budget and standard cost details for next year include: Selling price per unit RM35.00Variable production cost per unit RM4.50 Fixed production costs RM120,000Fixed selling and distribution costs RM85,000 Sales commission 10% of selling priceSales 80,000 unitsRequired:(i) Calculate the break-even point in units. (4 marks)(ii) The marketing manager has suggested that the selling price per unit can be increased to RM40.00 if the sales commission is increased to 12% of selling price and a further RM34,000 is spent on advertising. Calculate the revised break-even point based on the marketing manager’s suggestion. (8 marks)(ii) The marketing manager has suggested that the selling price per unit can be decreased to RM30.00 if the sales commission is reduced to 6% of selling price and a further RM30,000 is spent on distribution. Calculate the revised break-even point based on the marketing manager’s suggestion. (8 marks)
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