Question: QUESTION 4 a. Define cost structure. (25 MARKS) (3 marks) b. (CLO3, PLO5, C2) Managers often have some latitude in trading off between the

QUESTION 4 a. Define cost structure. (25 MARKS) (3 marks) b. (CLO3,PLO5, C2) Managers often have some latitude in trading off between the

QUESTION 4 a. Define cost structure. (25 MARKS) (3 marks) b. (CLO3, PLO5, C2) Managers often have some latitude in trading off between the variable cost and fixed cost. Provide your suggestion to the manger in deciding which is the best cost structure. (6 marks) (CLO3, PLO5, C3) c. The Alia B Enteprise operates a chain of wedding's shoe shops that carry many styles. One of the products called Ixora. The following data pertains to Exora: Per pair Selling price RM 120 Variable expenses Direct material RM 45 Direct labour RM 9 Sales commission RM 18 Total variable cost RM 72 Annual Fixed expenses Advertising Rent Salaries RM 120,000 RM 80,000 RM 400,000 Total fixed expenses RM 600,000 The company currently sells 11,500 units of its products. Required: i. Calculate the breakeven point in units and in value. ii. Calculate the margin of safety in units and in value. (4 marks) (CLO3, PLO5, C3) (3 marks) (CLO3, PLO5, C3)

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