Venus Ltd is a company engaged solely in the many facture of sweaters, which are bought mainly for sporting activities. Present sales are direct to retailers, but in recent years there has been a steady decline in output because of Covid - 19 pandemic. In the last year 2020, the accounting report indicated that the company produced the lowest profit for 10 years. The forecast for 2021 indicates that the present deterioration in profits is likely to continue. The company considers that a profit of RM 500,000 should be achieved to provide an adequate return on capital. The managing director has asked that a review be made of the present pricing and marketing policies, The marketing director has completed this review and passes the proposals on to you for evaluation and recommendation, together with the profit and loss account for year ending 31 December 2020. RM RM 5,040,000 480.000 1.200,000 760.000 880.000 Sales (280,000 units @ RM 18) Factory cost of goods sold: Direct materials Direct labour Variable factory overhead Fixed factory overhead Contribution Administrative overhead Selling and Distribution overhead: Commission (5% of sales) Delivery cost (25% of variable factory overhead) Fixed cost Profit (3.320.000) 1.720,000 (680,000) 252.000 190.000 320,000 (762.000) 278.000 28 100% Required: a) Calculate the break-even point (in units and value), and margin of safety (in unit and value) b) If in 2021, the company decides to have a profit at RM 600,000, calculate how much sales are needed in unit and value. e Based on your answer in (b), calculate the break-even point and margin of safety (in units and value). d) If in 2021, the company decides to reduce the number of sales to 200,000 units. - Calculate the new profit, break-even point (in units and value) and margin of safety (in unit and value)