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Calculate the required sales quantity

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Reference no: EM133089417

Question - Bess Bhd is dealing with organic health food and operate a small café at its only premise in Klang, a small town in Selangor. Its core product is the standard healthy breakfast combo which is sold is its own café and distributed to many supermarkets in the Klang Valley.

The following were extracted from the books of Bess Bhd. for the month of November 2020:

COMBO BREAKFAST PACK

Amount (RM) Amount (RM)

Sales Revenue 550,000

Less: Cost of Sales

Materials 165,000

Labour 132,000

Variable overheads 88,000

Fixed Overheads 90,000 475,000

Profits RM75,000

Sales Quantity - 11,000 units

Required -

a) Present the above information in a Marginal Cost format.

b) Calculate the number of units to be sold whereby the company neither makes a profit nor a loss.

c) Despite the current pandemic condition, the management is confident that sales can be maintained due to repeat orders by its loyal customers. Calculate the required sales quantity to earn an expected 30% profit on the current sales revenue when all other things remain the same.

Reference no: EM133089417

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