Question 5 Wei has gathered the following information for his company, the operating income for WCI Sdn Bhd for the year 2018 on production and sales volume of 200,000 units of filters. Table Q5 summarized the financial accounting operating statement of income and the additional accounting information with regard to the fixed costs (inventoriable and non-inventoriable) and variable costs per unit (inventoriable and non-inventoriable) are shown below the operating income. Sales revenue Cost of goods sold (COGS) Gross margin Operating expenses (marketing and distribution) Operating income (loss) RM 3,120,000 RM 1,920,000 RM 1,200,000 RM 1,380,000 RM (180,000) Fixed cost inventoriable) RM 600,000 Fixed cost (non-inventoriable) RM 180,000 Variable cost per unit (inventoriable) RM 6.60 Variable cost per unit (non-inventoriable) RM6.00 Table Q5: WCI Sdn Bhd: Operating Statement of Income Year Ended 2018 a) Calculate the total fixed cost and total variable cost/unit of the filter product for WCI. (4 marks) b) Calculate the breakeven point for the year 2018 in both sales volume and revenue. (5 marks) c) Calculate the sales volume required to achieve operating income of RM300,000 (4 marks) d) Calculate WCI's margin of safety in Ringgit and percentage using the expected operating income of RM300,00 stated in Question 5c). (4 marks) e) Because WCI's gross margin per unit is $6 (= RM1,200,000 = 200,000 units), Wei believes that if WSI had produced and sold 230,000 units (RM1,380,000 - $6 = 230,000), it would have covered the RM1,380,000 of operating expenses (marketing and distribution costs) and enabled WSI to break even for the year. Explain briefly why Wei is wrong. (3 marks) [Total: 20 marks]