Question: QUESTION 2 (20 MARKS) Steven Bhd makes clay pots in Kuala Selangor. The following are the budget for the next financial year 2021: Selling price

QUESTION 2 (20 MARKS)

Steven Bhd makes clay pots in Kuala Selangor. The following are the budget for the next financial year 2021:

Selling price per unit RM18.00

Variable cost per unit RM11

Fixed maintenance cost RM48,000

Fixed factory overhead cost RM15,000

Sales 12,000 units

REQUIRED:

  1. Calculate break-even point in units and value.

(5 marks)

  1. Calculate the margin of safety in value and in units.

(5 marks)

  1. If there is a 20 percent increase in the fixed cost per period, what will be the new break-even point in value and units.

(5 marks)

  1. If there is a 20 percent increase in the selling price per unit and the fixed cost and the variable cost remains the same, what will be the new break-even point.

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