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Question 4 The following information is given for Rise Up Sdn.Bhd: Unit sales price RM15 Variable cost per unit RM7 Total Fixed cost RM55,000
Question 4 The following information is given for Rise Up Sdn.Bhd: Unit sales price RM15 Variable cost per unit RM7 Total Fixed cost RM55,000 Required: a) Calculate the Contribution margin per unit. b) Contribution margin ratio. c) Break-even sales in the unit and RM. d) Sales in units required to achieve a net income of RM5,000. e) Sales in units required to achieve a net income of 15% of sales. (2 marks) (2 marks) (4 marks) (3 marks) (3 marks) f) Assume the budgeted sales of RM150,000 with a break-even sales level of RM125,000. What is the margin of safety for Rise Up Sdn Bhd? g) Briefly explain what margin of safety is and its use. (3 marks) (3 marks) (Total: 20 Marks)
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