Amara Caf is a food company that located in a middle of Shah Alam town. They...
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Amara Café is a food company that located in a middle of Shah Alam town. They specialize in producing pastry products. The normal unit of production for this company is 4,500 units per month and the selling price is RM5.20 per unit. The following is the information related to their production: Production worker salary Direct materials cost Factory rental Other fixed costs RM1.00 per unit RM1.60 per unit RM2,500 RM3,000 Required as below (answers need to be rounding off to the nearest Ringgit): (a) Calculate the break-even point in units and value for Amara Café by showing the contribution margin calculation. (8 marks) (b) Compute the contribution margin in ratio (in value) for the company. (2 marks) (c) Determine the number of units to be sold if the company wants to earn a profit of RM8,000. (4 marks) (d) Amara café decides to add one more special direct material in producing their product which costs RM0.45 per unit. Calculate the new break-even point in units. Amara Café is a food company that located in a middle of Shah Alam town. They specialize in producing pastry products. The normal unit of production for this company is 4,500 units per month and the selling price is RM5.20 per unit. The following is the information related to their production: Production worker salary Direct materials cost Factory rental Other fixed costs RM1.00 per unit RM1.60 per unit RM2,500 RM3,000 Required as below (answers need to be rounding off to the nearest Ringgit): (a) Calculate the break-even point in units and value for Amara Café by showing the contribution margin calculation. (8 marks) (b) Compute the contribution margin in ratio (in value) for the company. (2 marks) (c) Determine the number of units to be sold if the company wants to earn a profit of RM8,000. (4 marks) (d) Amara café decides to add one more special direct material in producing their product which costs RM0.45 per unit. Calculate the new break-even point in units.
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Related Book For
Operations Management in the Supply Chain Decisions and Cases
ISBN: 978-0073525242
6th edition
Authors: Roger Schroeder, M. Johnny Rungtusanatham, Susan Goldstein
Posted Date:
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