what is da question needed. im actually from science stream but now i have to study account subject plus im not have basic of accounting . can u help me guide this question pls ..? (MANAGEMENT ACCOUNTING)

QUESTION 1

You are a university graduate majoring in accounting and business. The government has offered an incentive scheme to engage in the manufacturing industry. The maximum offer for the scheme is RM50,000. For the purpose of obtaining such offer, you will be required to provide costing report for the chosen product. The report should contain the following information:

a.Business vision and mission

b.Monthly target production and sales unit

c.Specification of products

d.Flow of production process

e.Cost classification (refer appendix 1)

f.Cost of Good Manufactured Statement ( for 1 month production)

g.Income Statement (for 1 month)

(20 marks)

QUESTION 2

Based on your company financial data (based on QUESTION 1), answer these questions :

a.Based on (e), segregate total mixed cost using hi-low method

(assumption : consider sales unit as your unit activity; your current sales is highest point, and the lowest point is 40 percent lower than your current sales)

b.Show these following information on Cost-Volume-Profit Analysis graph of your company:

1.Variable cost

2.Fixed cost

3.Total sales

4.Break-even point : (show your calculation using mathematical equation method and contribution margin method)

5.Safety margin

6.Profit area

7.Loss area

c.Price of current direct material increased by 20%. Alternative direct material in the market with less quality is 10% higher than the current direct material price. Explain (with calculation) your decision whether company remains to use current direct material or alternative direct material.

d.Due to hard inflation, all your fixed cost (manufacturing and non-manufacturing) increased by 5%.

i. What is the effect of this situation to your company's current profit?

ii. What is your action to make sure your company is still profitable and relevant in the industry during this hard time?