Question: Case Study Analysis Instruction: - This section consists of three (3) main questions. - Please answer ALL questions by using the answer template (Excel Format)
Case Study Analysis Instruction: - This section consists of three (3) main questions. - Please answer ALL questions by using the answer template (Excel Format) provided. - Please submit you answer script in Excel Format. - Total marks are 40/100. Question 1 Portrait Imaging Company is considering introducing a new video camera. Its selling price is projected to be RM1200 per unit. Variable manufacturing costs are estimated to be RM360 per unit. Variable selling costs are 20% of sales ringgit. The company expects the annual fixed manufacturing costs for the new camera to be RM4,200,000. a. Compute Portrait Imaging's contribution margin per unit and contribution margin ratio. (10 marks) b. Determine the number of units Portrait Imaging must sell to break even. (5 marks) c. Portrait Imaging is considering a design modification that would reduce the variable cost of the camera by RM200 per unit. Explain whether this change will cause Portrait Imaging's breakeven point to increase or decrease when compared to the initial plans. Please show any changes in the new costs in your calculation and analysis to reflect this modification. (15 marks)
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