Reference no: EM132649874

Samsom Sdn Bhd makes aluminium furniture. The following are the budget for the next financial period:

Selling price per unit RM9

Variable cost per unit RM5

Fixed cost RM16,000

Fixed administration cost RM6,000

Sales 8,000 units

REQUIRED:

Question (a) Calculate break-even point in units and value.

Question (b) Calculate the margin of safety in value and in units.

Question (c) If there is a 20 percent increase in the fixed cost per period, what will be the new break-even point.

Question (d) If there is a 20 percent increase in the selling price per unit and the fixed cost and the variable cost remains the same, what will be the new break-even point.