Reference no: EM132583107
Currently, Happy Travel Sdn Bhd (HTSB) sells two (2) types of suitcase, namely: a carryon suitcase and a deluxe suitcase. The price and variable cost for each type of suitcase is listed below:
Suitcase Type Price (in RM) Variable Cost (in RM)
Carry-on 180 40
Deluxe 300 120
The total fixed costs for HTSB is RM60,000. For every three (3) carry-on suitcases sells, HTSB sells one (1) deluxe suitcase.
REQUIRED:
Question (a) Analyze the package contribution margin for the suitcases. Show all workings.
Question (b) Analyze the break-even point in units for carry-on suitcases and deluxe suitcases. Show all workings.
Question (c) If HTSB has a target income for the year 2021 of RM300,000:
i. Determine how many packages the company have to sell. Show all workings.
ii. Determine the HTSB's margin of safety in packages. Show all workings. (
Question (d) Discuss TWO (2) ways on how the above CVP analysis can be used for HTSB's managerial planning.