Natural Energy Tech (NET) Industries Berhad is a Malaysia company that manufactures and sells solar batteries...

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Natural Energy Tech (NET) Industries Berhad is a Malaysia company that manufactures and sells solar batteries for vehicles, machines and general facilities. Every year the company expected to produce 200,000 units of solar batteries and sells at RM500 each based on advance order received. The following are the costs incurred for each battery: i. ii. Type of costs Direct materials Direct labour In January 2023, the company received an urgent sales order of 20,000 units of solar batteries from one of its customers. The production manager reported that based on the current capacity run, the factory still manages to produce the solar batteries if produce concurrently with those ordered in advance. Alternately, the company receives a quotation from X-Power Energy Plant Pte. Ltd. that produces the same quality of solar batteries at RM480 each after converted to Ringgit Malaysia currency. The Accounts Manager, Mr. Tan, computed and informed the following charges will incur per unit if the company accepts to buy: Shipping and transportation cost per unit - RM12 Printing and packaging - RM3 Required Manufacturing overhead costs: - Variables - Fixed (b) Cost per unit battery RM 180.00 88.00 56.00 26.00 Mr. Tan also inform that the company can reduce 10% of the current fixed costs incurred and able to gain extra income RM150,000 if buy instead of produce. Compute and compare the effects to the company's net profit if Natural Energy Tech (NET) Industries Berhad decides to make or buy the solar battery. (Note: Show all workings.) (12 marks) Based on the findings in (a), should Natural Energy Tech (NET) Industries Berhad buys or make the solar battery? Why? (1 mark) Natural Energy Tech (NET) Industries Berhad is a Malaysia company that manufactures and sells solar batteries for vehicles, machines and general facilities. Every year the company expected to produce 200,000 units of solar batteries and sells at RM500 each based on advance order received. The following are the costs incurred for each battery: i. ii. Type of costs Direct materials Direct labour In January 2023, the company received an urgent sales order of 20,000 units of solar batteries from one of its customers. The production manager reported that based on the current capacity run, the factory still manages to produce the solar batteries if produce concurrently with those ordered in advance. Alternately, the company receives a quotation from X-Power Energy Plant Pte. Ltd. that produces the same quality of solar batteries at RM480 each after converted to Ringgit Malaysia currency. The Accounts Manager, Mr. Tan, computed and informed the following charges will incur per unit if the company accepts to buy: Shipping and transportation cost per unit - RM12 Printing and packaging - RM3 Required Manufacturing overhead costs: - Variables - Fixed (b) Cost per unit battery RM 180.00 88.00 56.00 26.00 Mr. Tan also inform that the company can reduce 10% of the current fixed costs incurred and able to gain extra income RM150,000 if buy instead of produce. Compute and compare the effects to the company's net profit if Natural Energy Tech (NET) Industries Berhad decides to make or buy the solar battery. (Note: Show all workings.) (12 marks) Based on the findings in (a), should Natural Energy Tech (NET) Industries Berhad buys or make the solar battery? Why? (1 mark)

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