using a format

a) Farah and Company makes Handbags and has supplied the following figures. 6,000 handbags RM60,000 RM37 Output Total fixed cost Selling price per handbag Variable costs per handbag Materials Component parts Labour RM6 RM4 RM12 I 0 Calculate the break-even point a) In units b) In sales revenue (10 marks) Farah and Company is considering increasing output to 3,000 handbags and estimates that the cost of materials per unit will be reduced to RM5. Calculate the new break-even point. c) In units d) In sales revenue 15 marks) (b) _The trade debtors control account has a balance of RM125.000 before any bad debts have been written off. Two trade debtors, Mimi RM700 and Jali RM800 respectively need to be written off Once this has been done you need to adjust the provision for doubtful debts account to be 29 of cutstanding debtors. The balance on this account currently stands at RM2,800 Prepare the relevant ledger accounts 15 marks)