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Samuel Sdn Bhd makes clay pot for the European Market. The following are the budget for the next financial period:
Selling price per unit RM13
Variable cost per unit RM7
Fixed cost RM18,000
Fixed administration cost RM24,000
Sales 12,000 units
REQUIRED:
Question (a) Calculate break-even point in units and value.
Question (b) Calculate the margin of safety in value and in units.
Question (c) If there is a 20 percent increase in the fixed cost per period, what will be the new break-even point.
Question (d) If there is a 20 percent increase in the selling price per unit and the fixed cost and the variable cost remains the same, what will be the new break-even point.
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