Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 3 Nurul Sdn Bhd (NSB) is a small bookstore which has been selling comic books in Puchong for two years. The owner, Puan Nurul
Question 3 Nurul Sdn Bhd (NSB) is a small bookstore which has been selling comic books in Puchong for two years. The owner, Puan Nurul plans to achieve a minimum profit of RM2,500 in the month of December 2020. According to her, this amount reasonable since during the school holidays in December many students would buy her books to read. Fixed costs which comprise mainly rental and salary are RM 1,100 monthly. The cost of books are expected to increase by 10% from its previous cost of RM4.90 per book and currently the selling price of each book is RM7.50. I Required a) Determine the break even sales. (4 Marks) b) Calculate target unit sold and total sales if NSB wants to achieve a minimum profit or RM2,500 for the month of December 2020. (5 Marks) c) Calculate margin of safety in units and value if unit sold are 1,000 units
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started