Compute the hd vision bhd required sales

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Reference no: EM132468595

Questiona HD Vision Bhd manufactures and sells televisions. Information on prices and other related costs are as follows:

Selling price per television             RM6,250

Variable cost per unit                         RM

Direct material                               2.825

Direct labour                                  1,250

Manufacturing overhead                      750

Selling expenses                                325

Total variable cost per unit                4,050

Annual ?xed cost                                RM

Manufacturing overhead               48,000,000

Selling and administrative              69.000.000

Total ?xed costs                           117,000,000

Forecasted annual sales volume (120.000 units) RM750.000,000

Required:

Question a) Calculate the break-even point (in RM and units) and the margin of safety (in percentage) for HD Vision Bhd.

Question b) Compute the HD Vision Bhd required sales (in RM and Units) in order to earn an income of RM05.000.000.

Question c) If the management of HD Vision Bhd estimates that direct labour costs will increase by eight percent next year.

i. How many units that the company needs to sell for the next year in order to reach its break-even point?

ii. What is the product's new selling price per unit that should be charged to maintain the contribution margin ratio? (round up to two decimal points).

Question d) Explain what will happen to the company's break-even point if the sales price and unit variable cost of the product increase by the same amount.

Reference no: EM132468595

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