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Question 4 The following information is given for Rossen Sdn.Bhd: Unit sales price RM10 Variable cost per unit RM6 Total Fixed cost RM50,000 Required:
Question 4 The following information is given for Rossen Sdn.Bhd: Unit sales price RM10 Variable cost per unit RM6 Total Fixed cost RM50,000 Required: a) 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 RM4,000. (2 marks) (2 marks) (4 marks) (3 marks) e) Sales in units required to achieve a net income of 15% of sales. (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 Rossen Sdn Bhd? (3 marks) g) Briefly explain what is margin of safety and its use. ***END OF QUESTION PAPER*** (3 marks) (Total: 20 Marks)
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