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Solve clearly Question 3 [15 marks] Bright Bhd. is a company that manufactures torchlights. In year 2020, the company incurred the following costs to produce

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Solve clearly

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Question 3 [15 marks] Bright Bhd. is a company that manufactures torchlights. In year 2020, the company incurred the following costs to produce and sell 50,000 torchlights. Direct Labor to make the torchlights RM4 per unit Direct Materials that go into the torchlights RM6 per unit Manufacturing costs that vary by units sold RM1 per unit Manufacturing costs that will not change as RM234,000 production volume changes Selling costs that vary by units sold RM0.50 per unit Selling costs that will not change as sales RM127,000 change Administrative costs RM275,000 (a) Calculate the variable costs to produce the torchlights. [3 marks] (b) Calculate the fixed costs to produce the torchlights. [3 marks] (c) Calculate the total cost per torchlight. [2 marks] (d) What is the selling price per torchlight if the company intends to earn 20% profit above total costs? [2 marks] (e) What is the contribution margin? Interpret your answer. [3 marks] (f ) Calculate the breakeven sales. [2 marks]

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