Amirul, Daus, Aidil, and Ashraff commenced a business and named their company as Rakan Teknologi Sdn Bhd. The company sells a ready-to-use software product, AX1 for the use of small businesses. The current selling price for the product is RM500. Next year in 2020, the company planned to sell 7,300 units. The followings are information on the expenses: Cost of software RM180 per unit Shipping and handling RM20 per unit Annual fixed cost RM1,200,000 Required: a. Calculate Rakan Teknologi’s breakeven point in unit and value (RM). b. Calculate the next year's margin of safety (in percentage). c. Calculate the company’s operating income for the year 2020 if there is a 10% increase in unit sales.
Amirul, Daus, Aidil, and Ashraff commenced a business and named their company as Rakan Teknologi Sdn Bhd. The company sells a ready-to-use software product, AX1 for the use of small businesses. The current selling price for the product is RM500. Next year in 2020, the company planned to sell 7,300 units. The followings are information on the expenses: Cost of software RM180 per unit Shipping and handling RM20 per unit Annual fixed cost RM1,200,000 Required: a. Calculate Rakan Teknologi’s breakeven point in unit and value (RM). b. Calculate the next year's margin of safety (in percentage). c. Calculate the company’s operating income for the year 2020 if there is a 10% increase in unit sales.
Chapter5: Introduction To Business Expenses
Section: Chapter Questions
Problem 63P
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Amirul, Daus, Aidil, and Ashraff commenced a business and named their company as Rakan
Teknologi Sdn Bhd. The company sells a ready-to-use software product, AX1 for the use of
small businesses. The current selling price for the product is RM500. Next year in 2020, the
company planned to sell 7,300 units. The followings are information on the expenses:
Cost of software RM180 per unit
Shipping and handling RM20 per unit
Annual fixed cost RM1,200,000
Required:
a. Calculate Rakan Teknologi’s breakeven point in unit and value (RM).
b. Calculate the next year's margin of safety (in percentage).
c. Calculate the company’s operating income for the year 2020 if there is a 10% increase in unit sales.
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