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Point 1: Zion Sports manufactures and sells a type of football jersey, Icarus. In order to manufacture the jerseys, the manufacturing machines costs RM 15000 in monthly rental. The whole manufacturing process needs 20 general workers paid RM 1500 each per month. The raw materials needed to manufacture the jerseys cost RM 45 per jersey.
Point 2: Zion Sports appoints Neo Distributors Sdn Bhd to distribute and sells the jerseys. For the Cheras area, Neo has three kiosks A, B, C located at three malls around the Cheras area. Each kiosk is staffed by two sales staff paid RM 2000 monthly. The rent for each kiosk is RM 1000 per month. The cost to ship the jerseys to each kiosk is RM 150 per month.
Point 3: Zion sells the jerseys to Neo RM 70 per jersey. Neo retails the jersey for RM 120 at the sales kiosks.
Question (i) What is the total fixed costs for
a. Zion Sports?
b. Neo Distributors
Question (ii) What is the monthly breakeven figure (jerseys) for
a. Zion Sports
Question (iii) What is the revenue for the breakeven sales for
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