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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. 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.
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