QUESTION 2 Swana Company produces and sells phone chargers. Data relating to the product for its...

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QUESTION 2 Swana Company produces and sells phone chargers. Data relating to the product for its first year of production and sales (year 2022) were as follows. Annual volume Selling price per unit Variable manufacturing cost per unit Variable selling and administrative costs per unit Annual fixed costs 22,000 units RM60 RM24 RM12 RM495,000 Twenty percent of the fixed portion are manufacturing costs and the balance are for selling and administrative costs. Assume that the company has one product that has the same price and the same variable cost per unit. Required I (a) Calculate the contribution margin per unit and ratio. (6 marks) (b) Calculate the breakeven point in units using contribution margin. Did the company achieve the breakeven in the year 2022? (4 marks) OUP (c) Prepare a detailed CVP Income Statement for the year 2022. Show your workings. (9 marks) (d) Calculate margin of safety ratio for year 2022. (3 marks) (e) If the company plans to increase the net income into double in the year 2023, how many units the company need to sell? (3 marks) QUESTION 2 Swana Company produces and sells phone chargers. Data relating to the product for its first year of production and sales (year 2022) were as follows. Annual volume Selling price per unit Variable manufacturing cost per unit Variable selling and administrative costs per unit Annual fixed costs 22,000 units RM60 RM24 RM12 RM495,000 Twenty percent of the fixed portion are manufacturing costs and the balance are for selling and administrative costs. Assume that the company has one product that has the same price and the same variable cost per unit. Required I (a) Calculate the contribution margin per unit and ratio. (6 marks) (b) Calculate the breakeven point in units using contribution margin. Did the company achieve the breakeven in the year 2022? (4 marks) OUP (c) Prepare a detailed CVP Income Statement for the year 2022. Show your workings. (9 marks) (d) Calculate margin of safety ratio for year 2022. (3 marks) (e) If the company plans to increase the net income into double in the year 2023, how many units the company need to sell? (3 marks)

Answer rating: 100% (QA)

a Cont ribution Marg in per unit Selling Price per Unit Variable Cost per Unit RM 60 RM 24 RM 36 Con... View the full answer