Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting The Impact On Decision Makers

Authors: Gary A. Porter, Curtis L. Norton

10th Edition

1305793196, 978-1305793194

More Books

Students also viewed these Accounting questions

Question

What is a straightforward productivity tip that everyone can use

Answered: 1 week ago

Question

Which processes can be changed?

Answered: 1 week ago