The Giant Watch Company manufactures high quality watches. For the current year, sales are 15,000 watches at RM350.00 each. Information on manufacturing and selling and administrative expenses are as follows:

Manufacturing costs:

Direct material RM120.00 per watch

Direct labor RM75.00 per watch

Variable overhead RM10.00 per watch

Fixed overhead RM100,000 per annum

Sellingand administrative expenses:

Variable RM5.00 per watch

Fixed RM100,060 per annum

REQUIRED:

a)Compute the contribution margin

b)Calculate contribution margin percentage

c)Calculate the break-even point in unit and Ringgit (RM)

d) The margin of safety in units