The CEO has furnished you with the following data. The company manufactures and sells a single product. The data below is for September 2013.

RM000 RM000

Sales 264

Direct materials 93.8

Direct labour 58.0

Overheads 89.0 240.8

Profit 23.2

(1) The unit selling price of the product was RM12.00.

(2) Variable overheads were RM1.50 per unit.

For October 2013, the following are forecasted:

(1) The selling price will be increased by RM0.50 per unit.

(2) Direct material prices will increase by 6%.

(3) Direct labour productivity will increase by 5%.

(4) Variable overheads per unit will remain unchanged.

(5) Fixed overhead expenditure will increase by RM4,000.

Required:

(a) Calculate for September 2013:

(i) Fixed overhead

(3 marks)

(ii) Contribution per unit

(2 marks)

(iii) The break-even point (sales units to the nearest unit)

(4 marks)

(iv) The contribution/sales ratio (%)

(2 marks)

(b) Calculate for October 2013:

(i) The sales revenue (to the nearest RM000) required to achieve a profit of RM30,000. (Show relevant workings).

(9 marks)