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SESSION 2010/2011 Owner of Restoran Ayam Rempah(RAR) reports monthly cost based on sales volume of 5,000 piece of ayam rempah as follows: Total of monthly Percentage of variable cost (%) (RM) Direct material 4,000 100 Direct labour 3,600 75 Manufacturing Overhead 3,000 40 Administrative expenses 2,000 25 The selling price for a piece of ayam rempah is RM4.50. Requirements: Consider each of the following question is separately by using the foregoing information each time. (1) Calculate the variable costs per unit and total of fixed costs. (RM1.68, 4200) (9 marks) (ii) RAR expects variable costs per unit to increase by 10%. If the current selling price is maintained, calculate the number of units to be sold to maintain the current profit. (5317) (5 marks) (iii) RAR got an offer to supply 4,000 piece of ayam rempah. This offer is made at the current selling price which reduced by 20%. Determine whether RAR should accept this offer. Why? (3 marks) (iv) State three (3) assumptions of cost volume profit analysis