Analyze the break-even point in units for carry-on suitcases

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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.

Reference no: EM132583107

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