User Account

All Pages

Determine the number of sales units

Assignment Help Accounting Basics
Reference no: EM133145594

Question - The following information relates to Maju Sdn. Bhd.

RM

Fixed costs per annum 60,000

Selling price per unit 20

Direct material cost per unit 3

Direct labour cost per unit 3

Variable overhead cost per unit 4

The company currently sells 8,000 units of its product.

Required - The questions below should be answered independently:

a) Determine the number of sales units that the company has to sell in order to break even.

b) Calculate the current profit of the company.

c) Advise the manager on how many units must be sold to obtain RM30,000 profit.

d) Due to an economic slowdown, sales volume is expected to reduce by 2,000 units. Therefore, the marketing manager decided to reduce the advertising expenses by RM10,000. The production manager decided to use a cheaper material which the price is 10% lower than before. What is the profit obtained?

e) The company decided to pay their salesmen based on units sold i.e. RM2.50 for each unit rather than the fixed amount of RM12,000. What is the new break-even point (in value and in units?)

f) How many additional units must be sold to meet an increase in machinery rental by RM8,000 per annum without any change in the current profit.

Reference no: EM133145594

Questions Cloud

Examine the strengths and weaknesses of both methods : Question - Satine Enterprises LTD recently bought a new company car for $25 000. Examine the strengths and weaknesses of both methods
Describe the role of the most senior is professional : Using an organization with which you are familiar, describe the role of the most senior IS professional. Provide examples of how that person is either a strateg
Highlight phrases with bold or underlines : Come up with a list of at least ten or more two+ word phrases (ex. online shopping, gadgets for sale). These should not include the name of the organization (Am
Critically evaluate electric vehicles : Critically evaluate whether Electric vehicles are truely sustainable towards reducing CO2 emissions and slowing down climate change
Determine the number of sales units : The company currently sells 8,000 units of its product. Determine the number of sales units that the company has to sell in order to break even
Sustainability ideals regarding climate change : How can individuals comply with the sustainability ideals regarding climate change.
What rate of markdown : An eyeglass company sells frames for $279. If they wanted to offer the lower price of $239, what rate of markdown (reduction in price) would they have to offer?
What is a nudge : According to the article. "A Practitioner's Guide to Nudging"
Elements of ethereum : 1. Do you think Ethereum can continue to competitively compete in the FinTech market or even surpass bitcoin in the next few years? Why or why not?

Reviews

Write a Review

Accounting Basics Questions & Answers

  What amount should st leger inc report for rent expense

On January 1, 2014, a machine was purchased for $900,000 by Young Co. What amount should St. Leger Inc. report for rent expense for 2014 on this lease

  Record as gain on retirement of bonds

On March 1, 2011, Hess retired $400,000 of these bonds at 98 plus accrued interest. What should Hess record as a gain on retirement of these bonds? Ingore taxes.

  Why is depreciation expense not reported in the cash flows

In the direct method, why is depreciation expense not reported in the cash flows from operating activities section.

  Prepare an income statement under variable costing

Consider the following information for Kilpatrick Corporation for 201X: Units Produced - 20,000. Prepare an income statement under variable costing

  Make the accounting entries corresponding to the acquisition

Make the accounting entries corresponding to the acquisition of the asset and at each accounting close

  What is Concord Corporation asset turnover

In 2020, Concord Corporation reported net income of $4.5 billion, net sales of $170 billion, What is Concord Corporation's asset turnover

  Preparing a

preparing a comprehensive

  Errors in recognizing inventory purchases in the correct

errors in recognizing inventory purchases in the correct year typically reverse in two years. suppose a company defers

  How much will have at the end

$200,000 growing at a 1% per year, and we invest them in a bank account that offers an annual rate of 5% for 10 years, how much will we have at the end?

  What is this firm acid test ratio

What is the acid test ratio for the firm with the following data - Net worth: $5,000, Current bills: $10,000 and COGS: $100,000

  What amount of deduction can sports equipment make

What amount of deduction can Sports Equipment make with respect to this car allowance when calculating net business income for tax purposes for 2019?

  Explain how cash and accrual accounting would differ

Explain how cash and accrual accounting would differ for each of the events listed above and describe the proper accrual accounting.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd