. Quartz Sdn Bhd is specializing in producing alarm clock. The company is currently producing and...

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В. Quartz Sdn Bhd is specializing in producing alarm clock. The company is currently producing and selling one type of alarm clock known as Princess Frozen Clock. The costs and revenues of Princess Frozen Clock based on the annual output of 50,000 units are as follows: RM Selling price per unit Cos per unit: 50.00 Direct material 10.00 Direct labour Variable production overhead Variable selling and distribution Non-Production Cost: 8.00 5.00 2.00 Fixed production overhead Fixed selling and distribution 120,000 90,000 40,000 1,000,000 Fixed administration Net Profit Required: (Each question is to be treated independently) i. Calculate the break-even point in units and in value. ii. Calculate the margin of safety in units and in value. If the company plans to sell 70,000 units of Princess Frozen Clock in a year, calculate the estimated net profit to be earned by the company. ii. iv. The company estimated that the direct labour cost per unit will increase by 20% and fixed selling and distribution expenses will increase by RM10,000. Predict the selling price needs to be set for Princess Frozen Clock if the company wish to maintain the current net profit and current sales volume. Assume that for the following year, an additional advertising costing RM30,000 is proposed, whilst at the same time the selling price is to be increased by 30%. V. Determine the new break-even in units and in value. В. Quartz Sdn Bhd is specializing in producing alarm clock. The company is currently producing and selling one type of alarm clock known as Princess Frozen Clock. The costs and revenues of Princess Frozen Clock based on the annual output of 50,000 units are as follows: RM Selling price per unit Cos per unit: 50.00 Direct material 10.00 Direct labour Variable production overhead Variable selling and distribution Non-Production Cost: 8.00 5.00 2.00 Fixed production overhead Fixed selling and distribution 120,000 90,000 40,000 1,000,000 Fixed administration Net Profit Required: (Each question is to be treated independently) i. Calculate the break-even point in units and in value. ii. Calculate the margin of safety in units and in value. If the company plans to sell 70,000 units of Princess Frozen Clock in a year, calculate the estimated net profit to be earned by the company. ii. iv. The company estimated that the direct labour cost per unit will increase by 20% and fixed selling and distribution expenses will increase by RM10,000. Predict the selling price needs to be set for Princess Frozen Clock if the company wish to maintain the current net profit and current sales volume. Assume that for the following year, an additional advertising costing RM30,000 is proposed, whilst at the same time the selling price is to be increased by 30%. V. Determine the new break-even in units and in value.

Answer rating: 100% (QA)

First we will calculate the contribution per unit Selling price 50 current sales in units50000 Curre... View the full answer