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QUESTION 4 Alston Sdn Bhd had provided the following data for one of its products for the month of July 2020: Sales for the month
QUESTION 4 Alston Sdn Bhd had provided the following data for one of its products for the month of July 2020: Sales for the month of July (units) 168,000 RM Price per Unit 30.00 Variable cost per unit: Direct material 8.28 Direct labour 6.96 Variable manufacturing overhead 4.08 Variable selling & administrative cost 2.28 Monthly fixed expenses: Manufacturing overhead 461,880 Fixed selling & administrative expense 425,160Required: 1. Calculate the company's contribution margin per unit and the contribution margin ratio. (6 mark) Continued... RRG 4/5 BAB 2024 MANAGEMENT ACCOUNTING FOR MANAGERS NOVEMBER 2021 2. Calculate the break-even point in units. (3 mark) 3. The company wants to earn a monthly net income of RM 323,400. How many units would the company has to sell to earning the projected net income? (3 mark) 4. Calculate the company's degree of operating leverage with the current sales of 168,000 units. (9 marks) 5. If the volume of sales increase by 6% from 168,000 units, by what percentage would operating income will increase? No change is expected in the selling price per unit and variable cost per unit. Round up calculations to two (?) decimal places. (4 mark)
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