Question 2 Tickman Fashion recently sold 70,000 shirts, generating sales revenue of RM4,900,000. The company's variable...
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Question 2 Tickman Fashion recently sold 70,000 shirts, generating sales revenue of RM4,900,000. The company's variable cost per unit and total fixed cost amounted to RM20 and RM2,800,000, respectively. Management is in the process of studying the monetary impact of various transactions and events, and desires answers to the following independent cases: Required: a. Management wants to lower the firm's break-even point to 52,000 units with all other things being equal. Calculate the fixed costs to achieve this objective. (10 marks) b. The company anticipates a RM2 hike in the variable cost per unit with all other things being equal. i. If management desires to keep the firm's current break-even point, calculate the selling price. (2 marks) ii. If selling price remains constant, calculate the firm's total fixed costs. (8 marks) Question 2 Tickman Fashion recently sold 70,000 shirts, generating sales revenue of RM4,900,000. The company's variable cost per unit and total fixed cost amounted to RM20 and RM2,800,000, respectively. Management is in the process of studying the monetary impact of various transactions and events, and desires answers to the following independent cases: Required: a. Management wants to lower the firm's break-even point to 52,000 units with all other things being equal. Calculate the fixed costs to achieve this objective. (10 marks) b. The company anticipates a RM2 hike in the variable cost per unit with all other things being equal. i. If management desires to keep the firm's current break-even point, calculate the selling price. (2 marks) ii. If selling price remains constant, calculate the firm's total fixed costs. (8 marks)
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