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Summary of data projection for Vorara Company is as below: Items Selling price per year per product Direct material (unit) Direct labor (unit) Overhead (unit)
Summary of data projection for Vorara Company is as below: Items Selling price per year per product Direct material (unit) Direct labor (unit) Overhead (unit) Selling expense (unit) Variable costs per unit RM 100 20 10 8 5 43 Overhead Advertising expenses Administrative expenses Total annual fixed costs 200,000 40,000 70,000 310,000 Calculate: 1. 2. 3. Annual breakeven point in units. Profit : If Vorara Company estimate the sales to 8,000 product unit next year. Additional scenario: a) Compute the targeted sales in unit that Vorara Company need to sell to generate a targeted profit of RM200,000. b) Calculate the operating income if the company increases the number of products sold by 10% and cuts the selling price by RM20 per unit
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