Kinder Soaps Sdn. Bhd. is planning to launch its new soap, The Main Event, in Malaysia for 2022. Based on the current market condition, the factory plans to produce and sell 3,500 pieces. The new soap is sold for RM 15 each piece. The fixed costs consist of fixed production costs RM20,000 and fixed selling expenses RM 7,300. The variable costs per piece is RM 4.5. The relevant range is expected between 1,500 and 4,200 pieces.

Required: Mark is rewarded only when there is working for each of your answers.

(i) Calculate the break-even point in pieces and value. (3 marks)

2. Sketch a traditional break-even chart with all relevant labels. (3 marks)
3. Calculate the number of pieces of soaps if factory expects to make a profit

of RM14,700. (3 marks)

4. Calculate the margin of safety in units and value based on upper range. (3 marks)
5. If the factory produces existing 3,500 soaps, fixed production costs decreased

by RM3,000, variable costs (in total) is increased to RM 6, profit is expected to

be RM14,200, Calculate the new selling price per piece. (4 marks)

(Total: 16 marks)