Question: PLEASE PLEASE PLEASE NEED ANSWER NOW Ahmed Sdn Bhd developed the following information for its product : Per unit Sales Price RM 90 Variable cost

PLEASE PLEASE PLEASE NEED ANSWER NOW

Ahmed Sdn Bhd developed the following information for its product :

Per unit

Sales Price RM 90

Variable cost RM 63

Contribution margin RM27

The total fixed cost is RM 1,215,000.

Required:

(a) How many units must be sold to break even? ( 3 marks)

(b) What is the total sales that must be generated for the company to earn a profit of RM60,000 (3 marks)

(c) If the company is presently selling 50,000 units, but plans to spend an additional RM108,000 on an advertising program, how many additional units must the company sell to earn the same Profit it is now making? (4 marks)

(d) Explain the purpose of preparing budget for the organization.

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