P ACC Q2 FULLSUBJECT: PRINCIPLE OF ACCOUNTINGPLEASE ANSWER ASAP Q2Sangkar Biru Sdn Bhd makes small bird houses that sells at RM32.00 each. The company'slevel of production and sales is 145,000 units. The company has a pre-tax income ofRM1,620,450. In addition to RM530,500 of fixed manufacturing overhead and RM169,050of fixed administrative expenses, the following per unit costs as in Table Q2 have beendetermined for each bird house.Table Q2: Cost Information for One Unit Bird House(ii)@(b)Cost ItemDirect materialDirect labour(i)(ii)Variable manufacturing overheadVariable selling expenseTotal variable costCalculate the break even point in units of the bird houses.Amount(RM)8.004.001.802.2016.00Determine Sangkar Biru's margin of safety.in units.in percentage.Compute:(i) The company's degree of operating leverage.The percentage of increase in income when sales increase by 20 percent.

Under Marginal costing, contribution or contribution margin is calculated by subtracting the…

(b) Calculate the break even point in units of the bird houses. Determine Sangkar Biru's margin of safety. in units. in percentage. (i) (ii) Compute : (i) The company's degree of operating leverage. (ii) The percentage of increase in income when sales increase by 20 percent.

(b) Calculate the break even point in units of the bird houses. Determine Sangkar Biru's margin of safety. in units. in percentage. (i) (ii) Compute : (i) The company's degree of operating leverage. (ii) The percentage of increase in income when sales increase by 20 percent.

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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Question

P ACC Q2 FULL

SUBJECT: PRINCIPLE OF ACCOUNTING

PLEASE ANSWER ASAP

Q2
Sangkar Biru Sdn Bhd makes small bird houses that sells at RM32.00 each. The company's
level of production and sales is 145,000 units. The company has a pre-tax income of
RM1,620,450. In addition to RM530,500 of fixed manufacturing overhead and RM169,050
of fixed administrative expenses, the following per unit costs as in Table Q2 have been
determined for each bird house.
Table Q2: Cost Information for One Unit Bird House
(ii)
@
(b)
Cost Item
Direct material
Direct labour
(i)
(ii)
Variable manufacturing overhead
Variable selling expense
Total variable cost
Calculate the break even point in units of the bird houses.
Amount
(RM)
8.00
4.00
1.80
2.20
16.00
Determine Sangkar Biru's margin of safety.
in units.
in percentage.
Compute:
(i) The company's degree of operating leverage.
The percentage of increase in income when sales increase by 20 percent.

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