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Superspice Sdn Bhd manufactures black pepper barbeque sauce called Smack. Each packet of Smack sells for RM4.80. The company's budgeted monthly production is 2,250 packets
Superspice Sdn Bhd manufactures black pepper barbeque sauce called Smack. Each packet of Smack sells for RM4.80. The company's budgeted monthly production is 2,250 packets of Smack. Information related to the month of December 2020 is as follows: RM Production costs (40% fixed) 5,000 Selling and distributions expenses (70% fixed) 3,500 Fixed administration costs 1,850 a b. For the month of December 2020, the company has sold 3,000 packets of Smack. Required: Identify the following for December 2020: The variable cost per packet . The monthly fixed cost. (4 marks) Determine the following for December 2020: i. The number of packets needed to be sold to breakeven ii. The margin of safety in packets The net profit for the period iv. The number of packets the company must sell to achieve a targeted profit of RM8,700. (6 marks) Due to the current economic condition, a 10% increase in variable cost per unit is anticipated due to the higher material prices. Determine the new selling price per packet if the company wishes to maintain the current contribution sales ratio. (4 marks) . The company has been planning to launch another sauce called Sweets in the year 2021 in addition to the current production line. Each packet of Sweets will be sold for RM6.50 with a contribution sales ratio of 70%. Both Smack and Sweets will be produced using the same production plant, requiring an additional fixed cost of RM4,000 per month The sales volume for Sweets is expected to be 3,375 packets while for Smack, it has to be limited to the budgeted monthly production level as being practiced by the company. C. d
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