Zarith Bhd estimates that variable costs will be 50% of sales and fixed costs will total RM1,600,000. Their selling price of the product is RM8 per unit where 500,000 units are budgeted to be sold.

A. Compute the BEP in units and RM using the contribution margin approach. (4 marks)

B. Compute the margin of safety in units, RM and ratio. (6 marks)

C. If Zarith Bhd wants to earn a net profit of RM800,000, how many units must be sold? (5 marks)

The question from Management Accounting.