Answer the question based on the picture below:

(a) What is an initial break even for Truly Sambalicious Factory in this case?

(b) Suppose the factory has excess capacity on the above supply, then act to reduce the selling price of

Sambal Hitam Pahangfrom RM200 per box to RM120 per box, expecting that its sales will increase from 2300 boxes to 3000 boxes. Get a new break -even point for this plant. What conclusions can you make from this break even analysis?

Truly Sambalicious Factory is the sole manufacturer and supplier of three types of traditional sambal in bulk using boxes containing 10 bottles with a capacity of 100ml of sambal to be distributed to restaurant operators around Kota Kinabalu and Labuan. Sambal Gesek Negeri Sembilan (a) is sold at RM80 per box, with a variable cost of RM35. Sambal Hitam Pahang (b) is priced at RM200 per box, with a variable cost of RM80, while Sambal Goreng Jawa (c) is sold at RM28 per box with a variable cost of RM25. Truly Sambalicious's factory has an annual fixed cost of RM328,000. Last year, the factory supplied 1200 boxes of Sambal Gesek Negeri Sembilan, 2300 boxes of Sambal Hitam Pahang, and 6050 boxes of Sambal Goreng Jawa in Sabah and Labuan. (a) What is an initial break even for Truly Sambalicious Factory in this case? [4 Marks] (b) Suppose the factory has excess capacity on the above supply, then act to reduce the selling price of Sambal Hitam Pahang from RM200 per box to RM120 per box, expecting that its sales will increase from 2300 boxes to 3000 boxes. Get a new break -even point for this plant. What conclusions can you make from this break even analysis? [6 Marks]