Reference no: EM133040496

Question - i. A&Z Company sells products both domestically and internationally. Fixed costs totalled RM5,000,000 last year. In an effort to increase its total sales volume, A&Z plans to spend an additional RM1,280,000 in advertising next year. Expected average prices and variable costs appear below.

	Domestic	International
Price per unit	RM50	RM40
Variable costs per unit	RM30	RM16

Because of the increased advertising, A&Z expects to sell 300,000 units domestically and 200,000 units internationally next year.

Required - Using the expected sale mix, determine the number of units that A&Z must sell in each market to meet the breakeven point.

ii. L-Tech Sdn Bhd prepare a manufacturing budget for an output of 50,000 units as follows:

RM

Direct material 100,000

Direct labor 50,000

Variable Ohd 75,000

Fixed overhead 100,000

Actual unit was stated at 60,000 unit of output with RM110,000 cost on direct materials; RM60,000 of direct labor; RM100,000 of variable ohd and RM97,000 of fixed overhead.

Required - Prepare and evaluate the performance report of the company using flexible budget.