Subject : Managerial and cost Accounting

Course : Bachelor's degree in Human Resource Management

Kopi Cikgu Sdn. Bhd. is the exclusive wholesale distributor of the "Golden Roast Coffee" manufactured in one of the industrial areas in Malacca. The coffee is sold in individual packets of 300gram at RM6 each. In developing the company's financial strategy for the year 2021, the company's president has accumulated all data on projected operation as follows: Expected sales volume 300,000 packets per annum Variable cost: Cost of coffee Cost of labour Selling and distribution Administration expenses Other overhead expenses RM2 per packet RM1 per packet RM0.50 per packet RM150,000 per annum RM90,000 per annum Additional information: 20% of the administration expenses are variable costs and remaining are fixed costs. 60% of the overhead expenses are fixed costs and the remaining are variable costs Required: (a) Calculate the following: 60% of the overhead expenses are fixed costs and the remaining are variable costs. Required: (a) Calculate the following: i. Break-even point in packets and value. (5 marks) ii. Total net profit for the year (6 marks) Margin of safety in packets and value. (4 marks) (b) It is estimated that the cost of coffee will increase by 5% and the total fixed costs is expected to increase by RM15,000: i. Calculate the numbers of units to be sold if the company wants to maintain the original net profit Assume other data remain the same. (4 marks) ii. If the selling price remains at RM6 per packet, determine new break-even point and margin of safety in packet. Assume other data remain the same. (6 marks)