Question 3

Ariani Sdn Bhd is a company that sells women accessories. The following information shows

the extract of one of the accessories (headwear) sold by Ariani for the first half year:

RM

Selling price (per unit) 135

Direct material (per unit) 20

Direct labour (per unit) 35

Direct expense (per unit) 10

Office rental (per month) 12,000

Salaries (per month) 25,000

Other expenses 57,000

Additional information:

i) Ariani managed to sell 40,000 units of headwear for the first half year. The

company plans to increase the sales volume by 10,000 units for the second half

year.

ii) In the second half year, direct material and direct expense increased by 20%.

Required:

a. Calculate the profit incurred by Ariani Sdn Bhd for the first half year.

b. Calculate the break-even point in value and unit for the first half year.

c. Calculate the margin of safety in value and unit for the first half year.

d. Calculate the break-even point in value and unit for the second half year.

e. Calculate the margin of safety in value and unit for the second half year.

f. Calculate the sales in unit and value if the company want to increase its profit by

20% for the second half year.