QUESTION $4(25$ MARKS$)$

Print Solutions Sdp$,$ Bhd$.$ has operated the business for $10$ years in several areas in Selangor, which are Gombak, Ampang, and Cheras Last year, the business opened a new centre located in Klang. After finalizing the financial statement, it shows that the Klang centre has incurred a loss of RM$5,500.$ The company is now considering shutting down the Klang centre due to the losses incurred.

The following information relates to the first $12$ months of operations:

The fixed costs for each area are RM$5,000.$

Required:

a$)$ Calculate the contribution margin and net profit if Print Solutions decides to maintain all centres.

$(8$ marks$)$

b$)$ Calculate the contribution margin and net profit if Print Solutions decides to drop the Klang sentre$.$

$(7$ marks$)$

c$)$ Advise the Print Solutions if the Klang centre should be dropped or maintained from the business operations.

$(4$ marks$)$

d$)$ Explain THREE $(3)$ qualitative factors to be considered before Print Solutions Sdp$,$ Bhd$.$ can decide on adding a new business operation.

$-$END OF QUESTIONS$-$

Thank you and good luck!