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QUESTION 4 (25 MARKS The following are the data for Digital World Company that produces wireless keyboard per month. Price per unit Total fixed costs
QUESTION 4 (25 MARKS The following are the data for Digital World Company that produces wireless keyboard per month. Price per unit Total fixed costs Sales revenue RM40 RM360,000 RM1,800,000 RM900,000 Total costs (a) (b) (C) (d) Calculate the quantity sold per month. [3 marks] What is the contribution margin per unit? [4 marks] How much is profit per unit? [3 marks] If the variable production cost per unit increases by 25% and fixed costs remain constant, determine the change in sales to maintain the same level of profit. [9 marks) Due to an increase in demand and a need to increase production, the company purchased an additional machine costing RM90,000 that will add up to it's total fixed costs while maintaining the initial variable cost and quantity sold. Determine the new selling price to maintain the same level of profit. [6 marks] (e)
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