11 C. Denim cloth Direct labor i. ii. performance evaluation and decision making: RM 15.00 per pair 12.00 per pair 8.00 per pair Variable production overhead Variable selling expense Fixed production overhead Fixed selling expense The owner is now considering a few alternatives for future expansion and comes to see you for advice. i. ii. Required: You are to advise him on the following matters independently. a. At the current operating level, calculate the following: Beak-event points in units and value Margin of safety in units and value 8.00 per pair 540,000 per annum 180,000 per annum b. To boost sales, the marketing manager suggested a more aggressive promotional campaign to be carried out. The campaign would cost RM80,000 per annum. As a result, the demand for 'JYZ' increases by 10%. Determine the following: New Break-event points in units The new net profit figure Due to the increase in import duty of the cloths, the cost of denim clothes has increased by 15%. Compute the new selling price if the current contribution sales ratio remains constant (Note: use two decimal places for the ratio). .
11 C. Denim cloth Direct labor i. ii. performance evaluation and decision making: RM 15.00 per pair 12.00 per pair 8.00 per pair Variable production overhead Variable selling expense Fixed production overhead Fixed selling expense The owner is now considering a few alternatives for future expansion and comes to see you for advice. i. ii. Required: You are to advise him on the following matters independently. a. At the current operating level, calculate the following: Beak-event points in units and value Margin of safety in units and value 8.00 per pair 540,000 per annum 180,000 per annum b. To boost sales, the marketing manager suggested a more aggressive promotional campaign to be carried out. The campaign would cost RM80,000 per annum. As a result, the demand for 'JYZ' increases by 10%. Determine the following: New Break-event points in units The new net profit figure Due to the increase in import duty of the cloths, the cost of denim clothes has increased by 15%. Compute the new selling price if the current contribution sales ratio remains constant (Note: use two decimal places for the ratio). .
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter10: Cost Analysis For Management Decision Making
Section: Chapter Questions
Problem 8P: The production of a new product required Zion Manufacturing Co. to lease additional plant...
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Transcribed Image Text:JYZ Sdn Bhd is a producer of new brand denim slack for local market. The denim slack used
a brand name 'JYZ. For the year 2021, the company managed to sell 60,000 pairs of this
product at RM75.00 per pair. The following information pertaining to a year period is
furnished by its owner for performance evaluation and decision making:
C.
Denim cloth
Direct labor
Variable production overhead
Variable selling expense
Fixed production overhead
Fixed selling expense
i.
ii.
The owner is now considering a few alternatives for future expansion and comes to see you
for advice.
RM
15.00 per pair
12.00 per pair
Required:
You are to advise him on the following matters independently.
a. At the current operating level, calculate the following:
Beak-event points in units and value
Margin of safety in units and value
8.00 per pair
8.00 per pair
540,000 per annum
180,000 per annum
b. To boost sales, the marketing manager suggested a more aggressive promotional
campaign to be carried out. The campaign would cost RM80,000 per annum. As a
result, the demand for 'JYZ' increases by 10%. Determine the following:
i.
New Break-event points in units
ii. The new net profit figure
Due to the increase in import duty of the cloths, the cost of denim clothes has
increased by 15%. Compute the new selling price if the current contribution sales ratio
remains constant (Note: use two decimal places for the ratio).
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