Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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: RM Sales Variable expenses 1,400,000 90,000 Contribution Margin 500,000 Fixed Expenses 300,000 200,000 Net Operating Income 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. b) Calculate the company's break-even in units. (4 marks) (CLO2:PLO5:C3) (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. f) Calculate is the company's degree of operating leverage. (4 marks) (CLO2:PLO5:C3) (4 marks) (CLO2:PLC 4/5

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting What the Numbers Mean

Authors: David Marshall, Wayne McManus, Daniel Viele

11th edition

1259535312, 978-1259535314

More Books

Students also viewed these Accounting questions