A company manufactures a single product for which cost and selling price data are as follows: 12 Selling price per unit (RM) Variable cost per unit(RM) Fixed costs per month(RM) Budgeted monthly sales (units) Required: a) Calculate the following: i) ii) vi) 8 96,000 30,000 The break-even point (in units) and (in sales value) The margin of safety (in units) if the sales is as budgeted. The unit of sales to produce a profit of RM25,200. The profit when 25,000 units were sold. The new break-even point (in sales value) if the variable costs per unit increases to RM9. The new break-even point (in units) if the fixed costs increases to RM110,600 per month, with no change in variable cost per unit. b) Discuss any TWO (2) limitations of break-even analysis.

A company manufactures a single product for which cost and selling price data are as follows: 12 Selling price per unit (RM) Variable cost per unit(RM) Fixed costs per month(RM) Budgeted monthly sales (units) Required: a) Calculate the following: i) ii) vi) 8 96,000 30,000 The break-even point (in units) and (in sales value) The margin of safety (in units) if the sales is as budgeted. The unit of sales to produce a profit of RM25,200. The profit when 25,000 units were sold. The new break-even point (in sales value) if the variable costs per unit increases to RM9. The new break-even point (in units) if the fixed costs increases to RM110,600 per month, with no change in variable cost per unit. b) Discuss any TWO (2) limitations of break-even analysis.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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