Calculate the sales required to achieve the objective

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Reference no: EM132583225

Maykin Sdn.Bhd. has budgeted to earn a before-tax profit of RM48,000 for the coming year. Budgeted figures are as follows.

Sales RM600,000

Variable costs RM270,000

Fixed costs RM282,000

Question (a) Calculate the contribution margin ratio.

Question (b) Calculate the sales revenue required to break even.

Question (c) Calculate the budgeted margin of safety as a percentage of budgeted sales.

Question (d) Maykin's management wants to earn a net profit before tax equal to 11% of sales. Calculate the sales required to achieve this objective.

Question (e) If actual sales volume exceeded the original budget by 10%, what would be the expected before-tax net profit?

Reference no: EM132583225

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