Required:

i. Prepare profit statement for May 2022 that will maximize profit for Happy Gift Sdn Bhd.

ii. Based on the current problem that Happy Gift Sdn Bhd is facing, the business has 2 alternative solutions. The first solution is to pay the existing workers extra overtime with a rate of 40% above normal rate for the respective good involved. The second solution is to outsource from a reliable supplier to produce the good that is lacking at a much cheaper cost which is at 20% lower cost. Advise which is the best alternative for Happy Gift Sdn Bhd among the alternatives?

b) Happy Gift Sdn. Bhd. is a famous handmade gift shop in Cyberjaya that produces variety well-built goods. Amongst all the goods that were meant gift and presents, 3 of them are vary famously favored and frequently ordered by customers. The table shows the selling price and the costs details of the 3 most demanded goods: Products Omnio Puritzel Dominz RM RM RM 70 60 80 Selling price per unit Standard cost per unit Material 30 20 30 Labour 15 10 20 Overhead 10 10 10 In the month of Mei 2022, the owner, En Hanif revised the selling price by adding 20% more from the original selling price. This move was taken to increase profitability due to the good demand of the 3 goods. The cost of the materials includes 10% of indirect materials cost. Labour cost reflects direct involvement of labour towards producing the 3 goods. Overhead cost for all the 3 goods is fixed per unit and is based on maximum demand per month. On the other hand, during the month, 2 of the workers fall sick and that resulted to a shortage of manpower to fulfill the normal demand of the 3 goods. Total labour hour shortages are 120 hours. Below are the standard requirement and normal demand of the goods: Products Omnio Puritzel Dominz Labour hour per unit (hour) 2 1.5 2 Maximum demand per month (unit) 80 130 100