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.
	(5 marks)
(b)	Calculate the break-even point in terms of participants in 2022.
	(5 marks)
(c)	Compute the number of participants that would have to be trained in 2023 to reach firms desired net income level.
	(5 marks)
(d)	Assume that the Nadia Consultancy train the same number of participants in 2023 as they did in 2022. What would the fees have to be charged in order to reach the targeted net income?
	(5 marks) (Total: 20 Marks)