Question 1 Megatrom Tech is a computer game manufacturer. It produces two games; Alien Predators and...

 

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Question 1 Megatrom Tech is a computer game manufacturer. It produces two games; "Alien Predators" and "Clash Royal". The following information was extracted from its books for the year ended 31 December 2018: Sales revenue Variable manufacturing costs Variable selling costs Units sold Fixed manufacturing costs Fixed selling costs Alien Predators RM2,400,000 RM800,000 RM350,000 10,000 units RM1,800,000 RM450,000 Question 2 Clash Royal RM3,750,000 RM1,500,000 RM450,000 15,000 units Required: 1. Prepare a contribution income statement of Megatrom for the year ended 31 December 2018. 2. Calculate the break-even units and sales for each game. 3. Calculate the required units of games (in total) at the assumed sales mix if Megatrom desires a profit of RM500,000? 4. Suppose the company sold a total of 25,000 games in 2018, of which only 10,000 units were Clash Royal. With the change in sales mix, a. calculate the net operating income of Megatrom for 2018. b. calculate the break-even units of Alien Predators and Clash Royal. c. compare your answers in (a) and (b) with the original sales mix (calculated in Requirement 1 and 2). Are the amounts different? Why or why not? 5. Refer to original data. Calculate the degree of operating leverage for 2018. Briefly explain your answer. Question 1 Megatrom Tech is a computer game manufacturer. It produces two games; "Alien Predators" and "Clash Royal". The following information was extracted from its books for the year ended 31 December 2018: Sales revenue Variable manufacturing costs Variable selling costs Units sold Fixed manufacturing costs Fixed selling costs Alien Predators RM2,400,000 RM800,000 RM350,000 10,000 units RM1,800,000 RM450,000 Question 2 Clash Royal RM3,750,000 RM1,500,000 RM450,000 15,000 units Required: 1. Prepare a contribution income statement of Megatrom for the year ended 31 December 2018. 2. Calculate the break-even units and sales for each game. 3. Calculate the required units of games (in total) at the assumed sales mix if Megatrom desires a profit of RM500,000? 4. Suppose the company sold a total of 25,000 games in 2018, of which only 10,000 units were Clash Royal. With the change in sales mix, a. calculate the net operating income of Megatrom for 2018. b. calculate the break-even units of Alien Predators and Clash Royal. c. compare your answers in (a) and (b) with the original sales mix (calculated in Requirement 1 and 2). Are the amounts different? Why or why not? 5. Refer to original data. Calculate the degree of operating leverage for 2018. Briefly explain your answer.

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