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Calculate the break-even point in unit for candy sweets

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Reference no: EM133087187

Question - Cik Aminah opens a chocolate shop in Bertam, Pulau Pinang. She is selling two types of products and plans to expand her business and sells more products in future. The current total fixed costs RM50,000.

Following are the current products for Candylicious Sdn Bhd

 

Candy Sweets

Candy Sours

Units

10,000

15,000

Selling price

RM15

RM12

Variable costs

RM5

RM8

Required -

1. Calculate the break-even point in unit and RM for each of the products.

2. Calculate the margin of safety in unit and RM for each of the products.

3. Calculate the break-even point in unit for candy sweets if the selling price per unit reduces by 10% but the variable cost per unit increase by 2%.

4. Calculate the total profit.

5. Calculate the units to be sold for each of the products if the total profit are RM50,000.

Reference no: EM133087187

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