Mobile Excellent Sdn Bhd (MESB) produces air compressors for a car manufacturer, Expert Holding, with a sales price of RM580 and a variable cost of RM180 per unit. Fixed costs are RM440, 000 per annum. A number of units sold for the year was 1,500 units.

You are required to calculate the following:

a) Contribution / Sales ratio.

(2 marks)

b) Number of units to break even.

(2 marks)

c) Sales value at break-even point.

(2 marks)

d) Calculate the margin of safety in units and value.

(3 marks)

e) Number of units to be sold to achieve a profit of RM220,000 per annum

(3 marks)

f) Number of units to be sold to achieve a profit of RM220,000 per annum with an increase of 10% total fixed cost

(3 marks)

g) Calculate the new break-even in units and value if the total variable cost per unit increases by 15%.

Answer rating: 100% (QA)

a Contribution Sales ratio Contribution per ... View the full answer