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QUESTION 3 (25 MARKS) Anatasia Sdn Bhd is a manufacturing company whuch produce woman clothing and accessories. The following is Alsatia Corporation's contribution format income
QUESTION 3 (25 MARKS) Anatasia Sdn Bhd is a manufacturing company whuch produce woman clothing and accessories. The following is Alsatia Corporation's contribution format income statement for last month: Sales Variable expenses Contribution Margin Fixed Expenses Net Operating Income RM 1.400.000 90,000 500,000 300.000 200.000 The company has no beginning or ending inventories and produced and sold 10,000 units during the month. Required: a) Calculate the company's contribution margin ratio. (4 marks) (CLO2.PLO5:C3) b) Calculate the company's break-even in units. (4 marks) (CLO2:PLO5:C3) c) If sales increase by 100 units, by how much should net operating income increase. (4 marks) (CLO2:PLO5:C3) d) How many units would the company have to sell to attain target profits of RM225,000. (5 marks) (CLO2:PLO5:C3) e) Calculate the company's margin of safety in dollars. (4 marks) (CLO2:PLO5:C3) f) Calculate is the company's degree of operating leverage. (4 marks) (CLO2:PLC
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