Question 3

Nadia Consultancy runs a training centre in Puchong. In 2022, the firm charges RM230 per participant. The estimated fixed cost of Nadia Consultancy for the period is RM55,000. The operating cost for each participant includes printed materials RM60, stationery RM30, and refreshments RM40. In 2022 Nadia Consultancy had a net loss of RM5,000 due to low number of participants. Nadia Consultancy expects per unit data and total fixed cost to be the same in 2023. Nadia Consultancy has set a goal of earning net income of RM5,000 in 2023.

Required:

As the accountant of Nadia Consultancy, compute the following figures:

(a) The number of participants trained in 2022. (b) Calculate the break-even point in terms of participants in 2022.