QUESTION 3 (20 MARKS) Gemilang Bhd Produces and sells two products, A and B. It manufactures these products in separate factories. They have no shared costs. This year, the company sold 120,000 units of each product. Sales and costs for each product as follows: Sales Variable costs Contribution margin Fixed costs Profit before tax Income taxes (35% rate) Net profit Required: Product A RM 3,000,000 Product B RM 3,000,000 1,800,000 600,000 1,200,000 2,400,000 600,000 1,800,000 600,000 600,000 210,000 210,000 390,000 390,000 a) Compute the break-even point in Ringgit Malaysia for each product (10 marks) b) Assume that the company expects sales of each product to increase to 190,000 units next year with no change in the unit sales prices. Prepare forecasted financial results for next year following the format of the contribution margin income statement (assume a 35% tax rate). ACC5100 (8 marks) CONFIDENTIAL 3 c) Give TWO (2) factors that might have created the different cost structures for these two products. (2 marks)