Question 4 Yuan SDN BHD (YSB) produces and sells strings of colourful indoor lights for holiday display to retailers for RM 8.42 per strings. The variables costs per strings are as follows: RM Direct materials 1.87 Direct labor 1.70 Variables factory overhead 0.57 Variables selling expenses 0.42 Fixed factory overhead cost totals RM245,650 per year. Fixed administrative cost totals RM 301,505. YSB expects to sell 225,000 strings of light next year. Required : a) calculated break even point in units and RM. b) calculate margin of safety in units and RM. c) how many units must be sold to earn profit of RM 500,000? d) suppose YSB actually experiences a price decrease next year while all other costs and the number of units sold remain the same. Would this increase or decrease risk for the company? ( hint : consider what would happen to the number of break even units and to the margin of safety).