Question
Syarikat Padu manufactures three different types of desk:Jati, Rubber and Rattan. Now, space is limited in the factory and there is a restriction on the
Syarikat Padu manufactures three different types of desk:Jati, Rubber and Rattan. Now, space is limited in the factory and there is a restriction on the number of machine hours available. Costs and selling price information for the financial year 1 January to 31 December 2022 for each type of desk is as follows:
| Jati Desk | Rubber Desk | Rattan Desk |
| RM | RM | RM |
Selling price per unit | 1,750 | 1,600 | 1,650 |
Variable materials costs: |
|
|
|
Wood and plastics | 480 | 460 | 486 |
Screws and fixings | 20 | 20 | 20 |
Variable labour costs | 180 | 160 | 160 |
Variable machine costs | 50 | 40 | 44 |
Share of fixed costs | 220 | 240 | 200 |
Machine hours required per unit | 2.5 hours | 2.0 hours | 2.2 hours |
Sales demand in units for 2020 | 1350 | 1550 | 1450 |
Machine hours available are 4,000 hours during 2022.
Fixed costs for 2022 are expected to be RM940,000.
Required:
(c) Show a profit statement for Syarikat if your recommended production plan in (a) is followed. (Round to nearest unit/RM where necessary).
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