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Sidar Harapan Industries produces thin limestone sheets used for cosmetic facing on buildings. The following income statement represents the operating results for the year just
Sidar Harapan Industries produces thin limestone sheets used for cosmetic facing on buildings. The following income statement represents the operating results for the year just ended. The company had sales of 1,800 tonnes during the year. The manufacturing capacity of the firm's facilities is 3,000 tonnes per year. (Ignore income taxes). Sinar Harapan Industries Income Statement For the Year Ended December 31, 2021 RM 900.000 Sales Variable costs: Manufacturing Selling costs Total variable costs Contribution margin RM 315.000 180,000 RM 400.000 RM 405,000 Fixed costs: Manufacturing Selling Administrative Total fixed costs Net income RM 100,000 107,500 40,000 RM 247.500 RM 157,500 Required: 1. Assume that management estimates that the selling price per tonne would decline by 10 percent next year. Variable costs would increase by RM40 per tonne, and fixed costs would not change. What sales volume in dollars would be required to earn a net income of RM94,500 next year
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