QUESTION 2 Chestor Sdn Bhd is considering the manufacture of the 2 following products: PARK RM20...

 

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QUESTION 2 Chestor Sdn Bhd is considering the manufacture of the 2 following products: PARK RM20 RM40 RM240,000 Variable Cost /unit Selling price /unit Fixed overhead Estimated sales of 'LINKIN' are 30,000 units and that of 'PARK' are 20,000 at the current lower estimate. A higher estimate of 'LINKIN' are 50,000 units and that of 'PARK' are 30,000 units. Required: (a) (b) (c) LINKIN RM10 RM15 RM100,000 (d) Calculate the number of units to break-even for each model. Find the profit of each model if the lower level of sales is achieved. Find the profit of each model if the higher estimated level of sales is achieved. Briefly explain limitations of break-even analysis QUESTION 2 Chestor Sdn Bhd is considering the manufacture of the 2 following products: PARK RM20 RM40 RM240,000 Variable Cost /unit Selling price /unit Fixed overhead Estimated sales of 'LINKIN' are 30,000 units and that of 'PARK' are 20,000 at the current lower estimate. A higher estimate of 'LINKIN' are 50,000 units and that of 'PARK' are 30,000 units. Required: (a) (b) (c) LINKIN RM10 RM15 RM100,000 (d) Calculate the number of units to break-even for each model. Find the profit of each model if the lower level of sales is achieved. Find the profit of each model if the higher estimated level of sales is achieved. Briefly explain limitations of break-even analysis

Answer rating: 100% (QA)

aLINKIN 30000 PARK 60000 The number of units to breakeven for each model is 30000 for LINKIN and 600... View the full answer