Reference no: EM132845532
Question - Syarikat BeritaKini (BK) is a mass media company. One of the Company's main product is BKBulanan which is delivered to customers on the first day of each month. Besides this, there is a weekly version; BK-Mingguan; subscribed by customers through online at a higher price. About 60% of the subscribers are local customers. Syarikat BeritaKini has been experiencing rapid growth for the first few years of its establishment; however, subscription sales have been declining in the current year due to weak economic markets and the COVID-19 pandemic. The following is the annual cost and sales structures by Syarikat BeritaKini:
Fixed costs RM306,000
Variable costs:
Delivery RM0.60 each issue
Commission RM3.00 each subscription
Administrative RM1.50 each subscription
Sales Mix based on Volume:
BK-Bulanan 20%
BK-Mingguan 80%
Selling price:
BK-Bulanan RM47 each subscription
BK-Mingguan RM19 each subscription
Required -
a) Calculate the total contribution margin and contribution margin ratio for the subscription of BK-Bulanan and BK-Mingguan, respectively.
b) Calculate the break-even points of Syarikat BeritaKini annual sales in unit subscription and ringgit.
c) Calculate the total sales required (in unit subscription and ringgit) for BK-Bulanan dan BK-Mingguan to achieve a target profit of RM75,000.
d) Explain TWO (2) assumptions applicable for Cost-Volume-Profit (CVP) analysis.