Am Berhad is a company producing tables. After discussing with the marketing manager, the production manager planning to focus on producing a product named AFI. The marketing manager is observing on two states, Selangor and Pahang, the sales at both states is expected to be RM500,000 an RM810,000 respectively. Information related to the cost per unit of the production for both states are as follows: SELANGOR (RM) PAHANG (RM) 135 Selling price Direct material 100 40 45 Direct labour 10 15 Overhead 20 30 50% of the overhead in SELANGOR and PAHANG are fixed. 3.Marketing manager suggested the company should sell AFl in both states as he is convinced the market would be good. However, the direct material cost will increase by 10%. Advice the management on how many additional units to be sold for both states, assuming other information remains unchanged and Am Berhad would like to maintain its annual profit. (Calculate to the nearest unit).

Am Berhad is a company producing tables. After discussing with the marketing manager, the production manager planning to focus on producing a product named AFI. The marketing manager is observing on two states, Selangor and Pahang, the sales at both states is expected to be RM500,000 an RM810,000 respectively. Information related to the cost per unit of the production for both states are as follows: SELANGOR (RM) PAHANG (RM) 135 Selling price Direct material 100 40 45 Direct labour 10 15 Overhead 20 30 50% of the overhead in SELANGOR and PAHANG are fixed. 3.Marketing manager suggested the company should sell AFl in both states as he is convinced the market would be good. However, the direct material cost will increase by 10%. Advice the management on how many additional units to be sold for both states, assuming other information remains unchanged and Am Berhad would like to maintain its annual profit. (Calculate to the nearest unit).

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

[The following information applies to the questions displayed below.] Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales $ 70,000 Variable expenses 38,500 Contribution margin 31,500 Fixed expenses 23,310 Net operating income $ 8,190 1. What is the contribution margin per unit? (Round your answer to 2 decimal places.) 2. What is the contribution margin ratio? 3. What is the variable expense ratio? 4. If sales increase to 1,001 units, what would be the increase in net operating income?
Foc Give me correct answer with explanation.
(a) Kimberley-Clark makes luxury hampers for sale in a chain of high-class department stores. The following financial information is available in Table Q2. Current output and sales are set at 30,000 hampers per year, though the fim has the capacity to produce 50,000 hampers per year. Table 2 COST ELEMENT PRICE (RM) 1. Wholesale price 2. Labor and material costs 3. Bought-in components 4. Overheads 80 15 25 800,000 (i) Identify and calculate the fixed cost. (11) Identify and calculate the variable cost. (111) Calculate the break-even quantity for the firm. (iv) Calculate the level of profit the firm is making.
compute for throughput time
Help solve all questions AXY LTD company is planning to use the economic order quantity model to determine the optimal order levels of raw materials. Material Z is consumed evenly over the year and the current usage is 120,000 units of a particular item in the year ahead. The item is purchased in boxes and each box containing 12 units of the material Z, at a price of RM252 per box. A safety inventory of 250 boxes is kept. The cost of placing and handling orders is estimated to be RM6,300, which is based cost incurred for similar orders that have already made. The cost of RM6,300 was for 30 orders. The inflation of 2 per cent should be added to the above ordering costs. Besides, the company estimates to be charged the transporation cost of RM15 per order. It should be assumed that ordering costs change in proportion to the number of orders place. Other costs which relate to material Z such as insurance, interest and space costs for a year, were calculated at 15 % of the purchase price.…
Milden Company is a distributor who wants to start using a contribution format income statement for planning purposes. The company has analyzed its expenses and developed the following cost formulas: Cost Cost Formula Cost of good sold $31 per unit sold Advertising expense $187,000 per quarter Sales commissions 7% of sales Shipping expense? Administrative salaries $97,000 per quarter Insurance expense $10,700 per quarter Depreciation expense $67,000 per quarter Because shipping expense is a mixed cost, the company needs to estimate the variable shipping expense per unit sold and the fixed shipping expense per quarter using the following data: Shipping Expense Year 1: First 33,000 $177,000 Second 35,000 $ 192,000 Third 40,000 $234,000 Fourth 36,000 $ 197,000 Year 2: First 34,000 $ 187,000 Second 37,000 $ 202,000 Third 48,750 $ 240,000 Fourth 45,750 $ 216,000 Required: 1. Using the high- low method, estimate a cost formula for shipping expense in the form Y = a + bX. 2. In the first…
Manly Beach Enterprises projects the following information for the coming year. Sales Production 1,900 units 2,000 units Selling price per sewing machine Total variable manufacturing cost Total fixed manufacturing cost Marketing and administrative cost (40% variable based on sales) $200 $160,000 $60,000 $80,000 a. Determine the projected net income using absorption costing: $ b. Determine the projected net income using variable costing: $
A company produces two products (product A &B) and is currently planning its production mix for the next operating period. the maximum demand of product A is 2,000 units whiles that of product B is also 2,000 units however, the total raw materials required for producing both products is only 60,000kg. the estimated cost, sales and production data of the two products are given below; product(A) Product(B) Direct material:@GH¢10per Kg 240.00 140.00 Direct labor:@GH¢30 per hour 60.00 90.00 fixed overhead 20.00 20.00 variable overhead:@GH¢40 per hour 80.00 120.00 total cost per unit 400.00 370.00 Add profit 50.00 30.00 selling price per unit…
Island Novelties, Incorporated, of Palau makes two products-Hawaiian Fantasy and Tahitian Joy. Each product's selling price, variable expense per unit and annual sales volume are as follows: Hawaiian Fantasy Tahitian Joy Selling price per unit $ 12 $ 120 Variable expense per unit $9 $ 48 Number of units sold annually 36,000 5,400 Fixed expenses total $ 437,000 per year. Required: 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format income statement showing both dollar and percent columns for each product and for the company as a whole. b. Compute the company's break - even point in dollar sales. Also, compute its margin of safety in dollars and its margin of safety percentage. 2. The company has developed a new product called Samoan Delight that sells for $45 each and that has variable expenses of $27 per unit. If the company can sell 12,000 units of Samoan Delight without incurring any additional fixed expenses: a. Prepare a revised contribution…
Hightech Sdn Bhd (HSB) produces knee guards for recreational activity, which are marketed throughout Malaysia. Selected cost and operating data relating to the product for two years are given below: Year 2020 Year 2021 Units in beginning inventory 0 ? Units produced during the year 18,000 10,800 Units sold during the year 14,400 14,400 Units in ending inventory 3,600 0 RM Selling price per unit 54 Manufacturing costs: Variable per unit produced: Direct materials 11 Direct labour 6 Variable overhead 5 Fixed per year 162,000 Selling and…
Am Berhad is a company producing tables. After discussing with the marketing manager, the production manager planning to focus on producing a product named AFI. The marketing manager is observing on two states, Selangor and Pahang, the sales at both states is expected to be RM500,000 an RM810,000 respectively. Information related to the cost per unit of the production for both states are as follows: SELANGOR (RM) PAHANG (RM) Selling price Direct material 100 135 40 45 Direct labour 10 15 Overhead 20 30 50% of the overhead in SELANGOR and PAHANG are fixed. 1.Classify the cost incurred into variable cost per unit and total fixed cost for both states.