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QUESTION 8 Kimy Stores produces and sells baby product called YUMMY. For 2021, the Stores had the following Statement of Comprehensive Income RM Direct material
QUESTION 8 Kimy Stores produces and sells baby product called "YUMMY". For 2021, the Stores had the following Statement of Comprehensive Income RM Direct material 35.00 Direct labour 12.00 Manufacturing overhead 6.00 Selling expenses 2.00 Total variable cost per unit 55.00 Selling price per unit 85.00 Annual fixed costs Selling and administration 434,000 Manufacturing overhead 352.000 Total fixed costs 786.000 You are required to: Answer each question independently of each other. D Calculate the break-even point in units and value for Kimy Stores for 2021. ii) Calculate how many units, Kimy Stores need to sell in order to earn RM620,000 profit in 2020. 111) iv) Calculate how many units to be sold in 2021 in order to operate at break-even point if Kimy Stores estimates that direct labour costs will be increased by 8% while other costs remain constant Due to excellent cost control, direct material cost and variable selling expenses is expected to reduced by 8% and 10% respectively in 2022. Calculate the selling price per unit that should be charged in order to maintain the original contribution-margin ratio. (Round to two decimal places)
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