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Revenue RM12,345,550.00 RM29.75 Less Variable Costs. RM8,645,230.00 RM20.83 Contribution Margin RM3,700,320.00 RM8.92 Less Fixed Costs (Overheads) RM1,425,500.00 RM3.43 Operating Profit RM2,274,820.00 RM5.48 Less Taxation
Revenue RM12,345,550.00 RM29.75 Less Variable Costs. RM8,645,230.00 RM20.83 Contribution Margin RM3,700,320.00 RM8.92 Less Fixed Costs (Overheads) RM1,425,500.00 RM3.43 Operating Profit RM2,274,820.00 RM5.48 Less Taxation @24% RM545,956.00 RM1.31 Profit after tax RM1,728,863.32 RM4.17 The company is selling a special power bank at an average price of about RM30.00. A new customer from Rwanda is interested to order 200,000 pieces of the power banks per month for the next 12 months. The company can produce 1,000,000 pieces of power bank a month and they are only producing about 415,000 units per month now. However, the Rwanda's customers only willing to pay RM23 a piece for the power bank. The company needs to spend on shipping and other logistic costs of around RM220,000 per annum on delivery of the power banks.
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