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Question 3 Masterbag Sdn Bhd (MSB) manufactured and sold 60,000 school backpacks during the year just ended at an average price of RM30 per unit.
Question 3 Masterbag Sdn Bhd (MSB) manufactured and sold 60,000 school backpacks during the year just ended at an average price of RM30 per unit. Table below illustrate annual costs. I HINS RM Selling price per unit 30.00 c) Calculate MSB's margin of safety in units and in RM. (4 marks) d) MSB's management estimates that variable manufacturing costs will increase by 10% next year. Calculate MSB's new break-even point. (4 marks) 9.00 Variable cost per unit Manufacturing costs Marketing costs Total Variable Cost per unit 6.00 15.00 180,000 Annual fixed costs Manufacturing Overhead Selling and administrative costs Total Fixed Costs 70,000 Business Account (BAAB1014) Jawy 2022 Farmino CONFIDENTIAL 250,000 Work in process inventories nil e) If MSB's variable manufacturing costs do increase by 10%, calculate the new selling price that MSB needs to charge to maintain the same contribution margin ratio as before. (5 marks) ) Briefly explain term of fixed and variable cost. Give TWO (2) examples each. (5 marks) Required: a) Calculate MSB's break-even points in units and in RM. (4 marks) b) How many units would MSB have to sell in order to earn a net profit of RM200,000. (3 marks) (Total
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