Solution-Identify assumptions of cost-volume-profit analysis

Identify assumptions of cost-volume-profit analysis

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Reference no: EM132607591

Sentosa Sdn Bhd manufactures and sells recreational equipment. One of the company's products, a sleeping bag, sells for RM30 per unit. The projected operating income for the coming year is as follows:

	RM	RM
Sales (25,000 units)		750,000
(-) Variable cost
Direct material	150,000
Direct labour	100,000
Variable overhead	50,000
Total variable cost		(300,000)
Contribution margin		450,000
(-) Fixed cost		(180 000)
(-) Fixed cost
Operating income		270 000
Operating income

Required:

Question (a) Calculate the break-even sales in unit.

Question (b) Calculate the number of units to be sold AND the amount of sales to earn a profit of RM450,000.

Question (c) Identify any THREE (3) assumptions of cost-volume-profit analysis.

Reference no: EM132607591

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Identify assumptions of cost-volume-profit analysis

Reference no: EM132607591

Reference no: EM132607591

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