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Walla manufactured Sdn Bhd is a car manufacturer that produce side mirror with a sales price of RM350 and a variable cost of RM150. Fixed
Walla manufactured Sdn Bhd is a car manufacturer that produce side mirror with a sales price of RM350 and a variable cost of RM150. Fixed costs are RM250,000 per annum withtotal unit sold was 1,400 units. You are required to calculate the following: A. Contribution/Sales ratio. (2 marks) B. Number of units to break-even. (2 marks) C. Sales (RM) at break-even point. (2 marks) D. Number of units to be sold to achieve a profit of RM150,000 per annum (4 marks) E. Based on B above, find the margin of safety in units. (2 marks) F. Briefly describe the margin of safety and its importance in a business. (3 marks) (Total:15 Marks)
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