Nurul Sdn Bhd (NSB) is a small bookstore which has been selling comic books in Puchong...

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Nurul Sdn Bhd (NSB) is a small bookstore which has been selling comic books in Puchong for two years. The owner, Puan Nurul plans to achieve a minimum profit of RM2,500 in the month of December 2020. According to her, this amount reasonable since during the school holidays in December many students would buy her books to read. Fixed costs which comprise mainly rental and salary are RM1,100 monthly. The cost of books are expected to increase by 10% from its previous cost of RM4.90 per book and currently the selling price of each book is RM7.50. Required a) Determine the break even sales. b) Calculate target unit sold and total sales if NSB wants to achieve a minimum profit or RM2,500 for the month of December 2020. c) Calculate margin of safety in units and value if unit sold are 1,000 units. wwwwwww Nurul Sdn Bhd (NSB) is a small bookstore which has been selling comic books in Puchong for two years. The owner, Puan Nurul plans to achieve a minimum profit of RM2,500 in the month of December 2020. According to her, this amount reasonable since during the school holidays in December many students would buy her books to read. Fixed costs which comprise mainly rental and salary are RM1,100 monthly. The cost of books are expected to increase by 10% from its previous cost of RM4.90 per book and currently the selling price of each book is RM7.50. Required a) Determine the break even sales. b) Calculate target unit sold and total sales if NSB wants to achieve a minimum profit or RM2,500 for the month of December 2020. c) Calculate margin of safety in units and value if unit sold are 1,000 units. wwwwwww

Answer rating: 100% (QA)

a The breakeven point can be calculated using the formula Breakeven point units Fixed costs Contribu... View the full answer