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QUESTION Hartford Publishing Company (HPC) specializes in domestic business news publications. Its two principal magazines are HPC-Business and HPC-Golf, which are mailed to subscribers (customers)

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QUESTION Hartford Publishing Company (HPC) specializes in domestic business news publications. Its two principal magazines are HPC-Business and HPC-Golf, which are mailed to subscribers (customers) in the first week of each month. The company experienced a fast growth of subscribars in its first few years of operation, but sales have begun to slow down in recent years as new competitors have entered the market. HPC has the following cost structure and sales revenue for its subscription operations on a yearly basis: RM 378,000 per year Fixed Cost Variable Costs: Mailing (HPC-Business)... Manufacturing (HPC-Business) Administrative (HPC-BusinesSs).... RM36.40 per subscription 3.50 per subscription 2.00 par subscription Mailing (HPC-Golf Manufacturing (HPC-Golf Administrative (HPC-Golf...u 8.40 per subscription 1.50 per subscription Variable costs are different depending on the thickness and supplementary segments added Sales Information (based on number of subscriptions): HPC-Bus iness.. HPC-Golf... Selling Price: HPC-Bus iness 25,000 units 75,000 units RMS2 per subscription 20 per subscription Reguired: Use the above data to determine the following i. Contribution margin per unit for HPC-Business and for HPC-Golf (4 marks) i. HPC's breakevem point in sales units. Use weighted-average contribution margin approach nd 3 marks) (2 marks) iv. What sales level (in total units) at the assumed sales mix is required to reach a before-tax profit of 4 marks) show calculations ii What is the breakeven sales (in RM) for each magazine? RM75,000? (3 marks . With reference to (iv), what is the number of subscription for each magazine? vi Determine HPC budgcted net income for the year. vi (5 marks) For next year, the management has estimated that its variable manufacturing of HPC-Business will increase by 20%. The variable administrative cost of HPC-Golf will increase by RM2 pa subscription, while its mailing cost will deacrease to RM7.00 per subscription. There will be a decrease in the selling price of HPC-Business to RM48 and the selling price of HPC-Golf will increase by half. In addition, its HPC Business is getting more popular and it can expect to sell as many HPC-Business as HPC-Golf. Due to increase in the publication of HPC-Golf, the company extra printed ar magazinmarks) has decided to rent a small wehouse to keep the extra printed magazines at RM22,000 per year. Under these circumstances, determine how many subscription of each magazine HPC has to sell to break even

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