Question: how to do a,b,c and d. Thank you Question 3 Masterbag Sdn Bhd (MSB) manufactured and sold 60,000 school backpacks during the year just ended
Question 3 Masterbag Sdn Bhd (MSB) manufactured and sold 60,000 school backpacks during the year just ended at an average price of RM30 per unit. Table below illustrate annual costs. RM Selling price per unit 30.00 9.00 Variable cost per unit Manufacturing costs Marketing costs Total Variable Cost per unit 6.00 15.00 Annual fixed costs 180,000 Manufacturing Overhead Selling and administrative costs 70,000 Total Fixed Costs 250,000 Work in process inventories nil Required: a) Calculate MSB's break-even points in units and in RM, (4 marks b) How many units would MSB have to sell in order to earn a net profit of RM200,000 (3 marks) c) Calculate MSB's margin of safety in units and in RM (4 marks) d) MSB's management estimates that variable manufacturing costs will increase by 10% next year. Calculate MSB's new break-even point (4 marks)
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