QUESTION 1The Asian Division of Worldwide Reference Corporation produces a pocket dictionarycontaining popular phases in six Asian languages. Last year, the company sold 100,000 unitsof dictionary at RM20 per unit. Given below the cost incurred with regard to the dictionary inlast year.Costs:Variable (RM)Fixed (RM)Direct material600,000400,000300,000Direct labourProduction overhead200,000220,000Selling and administrative100,000The company expects the same costs as last year will incur for the current year.Required:a. Compute the company's break-even point in units and sales value.b. Compute the company's margin of safety in units and sales value.c. Compute the operating income for last year of Asian Division.d. If the company's targeted operating income is RM360,000 for this year, how many unitsmust be sold to reach the targeted operating income?

Name: QUESTION 1The Asian Division of Worldwide Reference Corporation produ
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Description: QUESTION 1The Asian Division of Worldwide Reference Corporation produces a pocket dictionarycontaining popular phases in six Asian languages. Last year, the company sold 100,000 unitsof dictionary at RM20 per unit. Given below the cost incurred with

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QUESTION 1 The Asian Division of Worldwide Reference Corporation produces a pocket dictionary containing popular phases in six Asian languages. Last year, the company sold 100,000 units of dictionary at RM20 per unit. Given below the cost incurred with regard to the dictionary in last year. Costs: Variable (RM) Fixed (RM) Direct material 600,000 400,000 300,000 100,000 Direct labour Production overhead 200,000 220,000 Selling and administrative The company expects the same costs as last year will incur for the current year. Required: a. Compute the company's break-even point in units and sales value. b. Compute the company's margin of safety in units and sales value. c. Compute the operating income for last year of Asian Division.

QUESTION 1 The Asian Division of Worldwide Reference Corporation produces a pocket dictionary containing popular phases in six Asian languages. Last year, the company sold 100,000 units of dictionary at RM20 per unit. Given below the cost incurred with regard to the dictionary in last year. Costs: Variable (RM) Fixed (RM) Direct material 600,000 400,000 300,000 100,000 Direct labour Production overhead 200,000 220,000 Selling and administrative The company expects the same costs as last year will incur for the current year. Required: a. Compute the company's break-even point in units and sales value. b. Compute the company's margin of safety in units and sales value. c. Compute the operating income for last year of Asian Division.

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 3 The Asian Division of Worldwide Reference Corporation produces a pocket dictionary containing popular phases in six Asian languages. Last year, the company sold 100,000 units of dictionary at RM20 per unit. Given below the cost incurred with regard to the dictionary in last year. Costs: Variable (RM) Fixed (RM) Direct material 600,000 400,000 300,000 Direct labour Production overhead 200,000 220,000 Selling and administrative 100,000 The company expects the same costs as last year will incur for the current year. Required: a. Compute the company's break-even point in units and sales value. b. Compute the company's margin of safety in units and sales value. c. Compute the operating income for last year of Asian Division. d. If the company's targeted operating income is RM360,000 for this year, how many units must be sold to reach the targeted operating income? e. In order to increase sales this year, the company is considering to pay the sales person's commission of RM2.50…
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