The following is information for Prisma products issued by Tekun Sdn. Bhd. (TSB) RM Sales (3,000 units) Variable cost 720,000 252,000 Contribution margin 468,000 Fixed cost 249,600 Net income 218,400 REQUIRED: (1) Calculate (CLO3, C3) the sales volume in units and Ringgit at break-even point. (i) Calculate (CLO3, C3) the safety margin in Ringgit and give an explanation (CLO,C4) to your answer. Calculate (CLO3, C3) the number of units to be sold if TSB targets a profit of RM500,000 for next month. (iv) To increase the production capacity of TSB, production managers are planning to buy a machine with a price of RM580,000. The estimated depreciation of the machine is RM72,000. The direct labor costs of operating the machine will increase by RM16 per unit. With this change, sales units are expected to increase to 4,500 units. Calculate (CLO, C3) the selling price per unit of Prisma product if TSB wants to maintain existing profit.

The following is information for Prisma products issued by Tekun Sdn. Bhd. (TSB) RM Sales (3,000 units) Variable cost 720,000 252,000 Contribution margin 468,000 Fixed cost 249,600 Net income 218,400 REQUIRED: (1) Calculate (CLO3, C3) the sales volume in units and Ringgit at break-even point. (i) Calculate (CLO3, C3) the safety margin in Ringgit and give an explanation (CLO,C4) to your answer. Calculate (CLO3, C3) the number of units to be sold if TSB targets a profit of RM500,000 for next month. (iv) To increase the production capacity of TSB, production managers are planning to buy a machine with a price of RM580,000. The estimated depreciation of the machine is RM72,000. The direct labor costs of operating the machine will increase by RM16 per unit. With this change, sales units are expected to increase to 4,500 units. Calculate (CLO, C3) the selling price per unit of Prisma product if TSB wants to maintain existing profit.

Name: The following is information for Prisma products issued by Tekun Sdn.
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Description: The following is information for Prisma products issued by Tekun Sdn. Bhd. (TSB)RMSales (3,000 units)720,000Variable cost252,000Contribution margin468,000Fixed cost249,600Net income218,400REQUIRED:(i) Calculate (CLO3, C3) the sales volume in units a

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter12: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 12.16E: Product cost concept of product pricing Based on the data presented in Exercise 12-15, assume that...

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