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Question 3 Pak Ali Western produces a single product of frozen lamb chop and the following forecast information is available for the year ending
Question 3 Pak Ali Western produces a single product of frozen lamb chop and the following forecast information is available for the year ending 31 March 2022. Cost per unit produced Direct materials Direct labour Variable production overheads RM 22 18 11 The projected sales price is RM70 a unit and the company's budgeted level of sales are 20,000 units for the year. The fixed costs are RM120,000 per annum. Required: a) Compute the number of products needed to break even (in unit and RM) b) How many products must be sold to earn a profit of RM100,000? c) Calculate the margin of safety in units. (4 marks) (3 marks) (3 marks)
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