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Stylo Apparel Manufacturing Sdn. (SAMS) manufactures a single product for the consumer market. The following are estimated monthly production costs data: RM/unit Direct material/unit 10.00

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Stylo Apparel Manufacturing Sdn. (SAMS) manufactures a single product for the consumer market. The following are estimated monthly production costs data: RM/unit Direct material/unit 10.00 Direct labor/unit 8.00 Variable overhead/unit 2.00 Total fixed overhead RM150,000/month A. SAMS sells their product to retailers for RM40/unit. Calculate SAMS break- even units and margin of safety if monthly expected sales is 10,000 units per month.(2 marks) Your answer B. SAMS is planning to implement a marketing promotion to boost monthly sales Marketing feedback indicates that the promotion will increase current monthly expected sales of 10,000 units by 10%. Estimated additional monthly cost to rur the promotion is RM25,000. Do you recommend SAMS to go ahead with the monthly promotion? Support your recommendation with cost/benefit analysis and calculate the impact on monthly profit if SAMS went ahead with the marketing promotion. (3 marks) Your

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