TREK LIMITED MABUFACTURES AND SELLS THEIR PRODUCT-TUBO MOUNTAIN BICYCLES (TMB) TO THE VARIOUS DEALERS WITHIN THE COUNTRY. THE BUDGETED PRODUCTION AND SALES PER MONTH IS 7000 UNITS TMB.THE SELLING PRICE PER UNIT TMB IS TM 180. THE UNITS PRODUCTION COST IS AS FOLLOWS:

DIRECT MATERIALS - RM 38

DIRECT WAGES -RM 44

VARIABLE WAGES - RM 28

FIXED OVERHEADS - RM 20

YOU ARE REQUIRED TO:

(A)PREPARE A DETAILED MARGINAL COST STATEMENT FOR THE BUDGETED OUTPUT. (6 MARKS)

(B) CALCULATE THE BREAK EVEN IN:

(i) units (4 MRKS)

(ii)money value(3 MRKS)

(C) CALCULATE THE EXTRACT SALES QUANTITY REQUIRED TO BE SOLD TO EARN A PROFIT OF RM 378500 WHEN THE SELLING PRICE PER UNIT IS REDUCED BY 5% (6 MRKS)

(D) OUTLINE THREE (3) ASSUMPTIONS OF BREAK EVEN ANALYSIS (6 MRKS).