Cantiq Sdn. Bhd. (Cantiq) manufactures and sells cosmetic products. The following information is provided below: Manufacturing...

 

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Cantiq Sdn. Bhd. (Cantiq) manufactures and sells cosmetic products. The following information is provided below: Manufacturing costs: Direct materials cost per unit Direct labor cost per unit Variable overhead cost per unit Fixed overhead cost in total Selling expenses: Variable selling expenses per unit Fixed selling expenses in total The selling price for each unit is RM145.00. RM 50 42 18 52,000 25 21,000 Required: a) Calculate the total variable cost per unit and total fixed expenses for the year. (3 marks) (3 marks) b) Calculate the contribution margin per unit and contribution ratio. c) Calculate the break-even in the unit and Ringgit Malaysia (RM). (4 marks) d) Assume that Cantiq managed to sell 3,850 units and calculate the profit of the company for the current year. (3 marks) e) What are the total sales that must be generated for the company to earn a profit of RM210,000? (4 marks) f) Compute the margin of safety in the unit and RM. (3 marks) g) Compute a new break-even point (unit and RM) if Cantiq decided to increase the selling price by 20% and increase the additional fixed cost of RM30,000. (5 marks) Cantiq Sdn. Bhd. (Cantiq) manufactures and sells cosmetic products. The following information is provided below: Manufacturing costs: Direct materials cost per unit Direct labor cost per unit Variable overhead cost per unit Fixed overhead cost in total Selling expenses: Variable selling expenses per unit Fixed selling expenses in total The selling price for each unit is RM145.00. RM 50 42 18 52,000 25 21,000 Required: a) Calculate the total variable cost per unit and total fixed expenses for the year. (3 marks) (3 marks) b) Calculate the contribution margin per unit and contribution ratio. c) Calculate the break-even in the unit and Ringgit Malaysia (RM). (4 marks) d) Assume that Cantiq managed to sell 3,850 units and calculate the profit of the company for the current year. (3 marks) e) What are the total sales that must be generated for the company to earn a profit of RM210,000? (4 marks) f) Compute the margin of safety in the unit and RM. (3 marks) g) Compute a new break-even point (unit and RM) if Cantiq decided to increase the selling price by 20% and increase the additional fixed cost of RM30,000. (5 marks)

Answer rating: 100% (QA)

a Calculation of Total Variable cost per unit and Total fixed costs for the year Direct material cos... View the full answer