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WinWin Enterprise's projected profit for the coming year is as follows: Total Per Unit RM RM Sales 850,000 85 Less: Variable expenses (400,000) (40) Contribution
WinWin Enterprise's projected profit for the coming year is as follows: Total Per Unit RM RM Sales 850,000 85 Less: Variable expenses (400,000) (40) Contribution margin 450.000 45 Less: Fixed expenses (135,000) Operating income 315,000 c) Compute the contribution margin ratio. Using that ratio, compute the break-even point in ringgit (4 marks) d) Suppose WinWin Enterprise would like to earn an operating income equal to 30% of total sales revenue. Compute how many units must be sold to achieve the goal. (4 marks) e) Compute the new break-even points in unit and RM) if WinWin Enterprise decided to increase the selling price by 20% and an increase in additional advertisement costs of RM25,000
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