Q2. Bersatu Manufacturing Bhd. sells two types of products, Bag and shirt. The management accountant has...
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Q2. Bersatu Manufacturing Bhd. sells two types of products, Bag and shirt. The management accountant has prepared the following information for both products: Product Bag Shirt Selling Price (RM) 20 15 Fixed cost is RM 60,000 per month. Required: Variable Cost (RM) 10 6 Sales Unit (Units) 6,000 4,000 (a) Determine the break-even point based on the average contribution margin per unit for Bersatu Manufacturing Bhd. and calculate the break-even point in units and the value for Bag and Shirt. (5 marks) (b) How does activity-based management help service industry to reduce costs and become more efficient? (7 marks) Q2. Bersatu Manufacturing Bhd. sells two types of products, Bag and shirt. The management accountant has prepared the following information for both products: Product Bag Shirt Selling Price (RM) 20 15 Fixed cost is RM 60,000 per month. Required: Variable Cost (RM) 10 6 Sales Unit (Units) 6,000 4,000 (a) Determine the break-even point based on the average contribution margin per unit for Bersatu Manufacturing Bhd. and calculate the break-even point in units and the value for Bag and Shirt. (5 marks) (b) How does activity-based management help service industry to reduce costs and become more efficient? (7 marks)
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a To determine the breakeven point based on the average contribution margin per unit for Bersatu Manufacturing Bhd we first need to calculate the contribution margin per unit for each product The cont... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0071339476
Volume 1, 6th Edition
Authors: Beechy Thomas, Conrod Joan, Farrell Elizabeth, McLeod Dick I
Posted Date:
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