. Quartz Sdn Bhd is specializing in producing alarm clock. The company is currently producing and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
В. Quartz Sdn Bhd is specializing in producing alarm clock. The company is currently producing and selling one type of alarm clock known as Princess Frozen Clock. The costs and revenues of Princess Frozen Clock based on the annual output of 50,000 units are as follows: RM Selling price per unit Cos per unit: 50.00 Direct material 10.00 Direct labour Variable production overhead Variable selling and distribution Non-Production Cost: 8.00 5.00 2.00 Fixed production overhead Fixed selling and distribution 120,000 90,000 40,000 1,000,000 Fixed administration Net Profit Required: (Each question is to be treated independently) i. Calculate the break-even point in units and in value. ii. Calculate the margin of safety in units and in value. If the company plans to sell 70,000 units of Princess Frozen Clock in a year, calculate the estimated net profit to be earned by the company. ii. iv. The company estimated that the direct labour cost per unit will increase by 20% and fixed selling and distribution expenses will increase by RM10,000. Predict the selling price needs to be set for Princess Frozen Clock if the company wish to maintain the current net profit and current sales volume. Assume that for the following year, an additional advertising costing RM30,000 is proposed, whilst at the same time the selling price is to be increased by 30%. V. Determine the new break-even in units and in value. В. Quartz Sdn Bhd is specializing in producing alarm clock. The company is currently producing and selling one type of alarm clock known as Princess Frozen Clock. The costs and revenues of Princess Frozen Clock based on the annual output of 50,000 units are as follows: RM Selling price per unit Cos per unit: 50.00 Direct material 10.00 Direct labour Variable production overhead Variable selling and distribution Non-Production Cost: 8.00 5.00 2.00 Fixed production overhead Fixed selling and distribution 120,000 90,000 40,000 1,000,000 Fixed administration Net Profit Required: (Each question is to be treated independently) i. Calculate the break-even point in units and in value. ii. Calculate the margin of safety in units and in value. If the company plans to sell 70,000 units of Princess Frozen Clock in a year, calculate the estimated net profit to be earned by the company. ii. iv. The company estimated that the direct labour cost per unit will increase by 20% and fixed selling and distribution expenses will increase by RM10,000. Predict the selling price needs to be set for Princess Frozen Clock if the company wish to maintain the current net profit and current sales volume. Assume that for the following year, an additional advertising costing RM30,000 is proposed, whilst at the same time the selling price is to be increased by 30%. V. Determine the new break-even in units and in value.
Expert Answer:
Answer rating: 100% (QA)
First we will calculate the contribution per unit Selling price 50 current sales in units50000 Curre... View the full answer
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0133392883
6th Canadian edition
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ
Posted Date:
Students also viewed these accounting questions
-
Each question needs to be around a page long. How do consumers use compensatory and noncompensatory decision making models? Why do marketers need to know that attribute processing is easier for...
-
Hooper Insecticide Company is currently producing and selling 30 000 kilograms of Sta Ded monthly. This volume is 70% of capacity for Sta Ded. A wholesaler outside the company's marketing area offers...
-
Each question is to be answered in the following manner: 1. Provide a clear and complete statement of the analysis principle/method of analysis that is to be illustrated by your proposed problem....
-
Arrange the following events in the correct temporal sequence during eukaryotic cell division, starting with the earliest: (a) condensation of the chromosomes, (b) Movement of chromosomes to the...
-
What data are required to construct a breakeven graph?
-
1. How is solar energy harnessed? 2. What is a photovoltaic cell and how does it work?
-
Charting, Inc., a new audit client of yours, processes its sales and cash receipts documents in the following manner: 1. Payment on account. The mail is opened each morning by a mail clerk in the...
-
Southland Industries has $60,000 of 16% (annual interest) bonds outstanding, 1,500 shares of preferred stock paying an annual dividend of $5 per share, and 4,000 shares of common stock outstanding....
-
Three siblings, Akbar, Benot, and Cleo, live in the town of Digitopolis. The sum of the ages of all three children is 16. Akbar's age is equal to the sum of the other two. Three times Cleo's age is 1...
-
A tennis ball is mounted on a spring that is suspended from a ceiling in John's dorm room. For entertainment, stress relief, boredom or just for a pure conversation piece, the tennis ball can be...
-
Question: AC3220 Ltd. operates a profitable business in a relatively stable market. Management estimates that monthly profit subject to taxes is $10,000. In order to ensure that the financial...
-
Outdoor Amenities is a manufacturer of backyard and deck furniture. Its products are in high demand, and it carries no inventory. Following is a list of selected account balances from its trial...
-
Prepare the income statement for West Nautical Company in E2-31A for the most recent year. Assume that the company sold 34,000 units of its product at a price of $12 each during the year. Data From...
-
Charles Juniper, 24, is about to begin his career as a rocket scientist for the European Space Agency. Being a rocket scientist, Charles knows that he should begin saving for retirement immediately....
-
A certain capacitor is fully charged by a battery, such that the positive plate holds a charge \(+q\) and the negative plate holds a charge \(-q\). The plates of the capacitor are then pulled apart...
-
Backyard Amenities is a manufacturer of backyard and deck furniture. Its products are in high demand, and it carries no inventory. To follow is a list of selected account balances from its trial...
-
Why in TDOS of Fe-doped TiO2 as shown in figure the curve suddenly goes down and rise ? Give a complete analysis
-
Rewrite the code of Figure 7.3 in Ada, Java, or C#. Figure 7.3: template class queue { item items [max_items]; int next_free, next_full, num_items; public: queue () : next_free (0), next_full(0),...
-
(Continuation of 17-36). Porter Handcraft is a manufacturer of picture frames for large retailers. Every picture frame passes through two departments: the Assembly department and the Finishing...
-
A number of terms are listed below: Accounting rate of return.... accrual accounting rate of return (AARR) Adjusted rate of return....... capital budgeting Discount rate......... discounted cash flow...
-
University Press produces textbooks for university courses. They recently hired a new editor, Leslie White, to handle production and sales of books for an introduction to accounting course. Leslies...
-
The \(10-\mathrm{kg} / \mathrm{m}\) cable is suspended between the supports \(A\) and \(B\). If the cable can sustain a maximum tension of \(1.5 \mathrm{kN}\) and the maximum sag is \(3...
-
The cable has a weight of \(5 \mathrm{lb} / \mathrm{ft}\). If it can \(\operatorname{span} L=300 \mathrm{ft}\) and has a sag of \(h=15 \mathrm{ft}\), determine the length of the cable. The ends \(A\)...
-
Solve Prob. 6-1 using the Mller-Breslau principle. Data From Problem 6.1 3 ft 6 ft C 6 ft B 9 ft
Study smarter with the SolutionInn App