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Segoland Sdn. Bhd. is a leisure and entertainment-based company. They plan to hold a concert in Tambun Bay, Perak. The proposed selling price per
Segoland Sdn. Bhd. is a leisure and entertainment-based company. They plan to hold a concert in Tambun Bay, Perak. The proposed selling price per ticket is RM80. The detailed budget for 8,000 tickets for the concert is as follows: Direct labour Variable other overhead RM160,000 RM120,000 Selling and distribution overhead Administration overhead RM100,000 RM60,000 40% of selling and distribution overhead is variable cost while administration overhead is 100% fixed cost. Required: (a) i. Variable cost per ticket and total fixed cost. Break-even point in units and value. iii. Margin of safety in units and value. Calculate: ii (b) Determine the number of tickets that must be sold in order to earn RM100,000 net profit if the following changes take place in the year 2020: i. ii. Selling price to increase by 20%. Variable selling and distribution overhead to increase by 30%. iii. Direct labour cost per ticket to increase by RM11. iv. Additional administration cost of RM20,000 to be incurred. v. Other costs remain unchanged.
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a i Variable cost per ticket Direct labour cost per ticket RM160000Number of tickets RM160000x RM11 Variable other overhead per ticket RM120000x RM8 V...Get Instant Access to Expert-Tailored Solutions
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