QUESTION 8 Kimy Stores produces and sells baby product called YUMMY. For 2021, the Stores had...

Transcribed Image Text:

QUESTION 8 Kimy Stores produces and sells baby product called "YUMMY". For 2021, the Stores had the following Statement of Comprehensive Income. RM Direct material 35.00 Direct labour 12.00 Manufacturing overhead Selling expenses Total variable cost per unit 6.00 2.00 55.00 Selling price per unit 85.00 Annual fixed costs 434,000 352.000 786,000 Selling and administration Manufacturing overhead Total fixed costs You are required to: Answer each question independently of each other. Calculate the break-even point in units and value for Kimy Stores for 2021. Calculate how many units, Kimy Stores need to sell in order to earn RM620,000 profit in 2020. i) Calculate how many units to be sold in 2021 in order to operate at break-even point if Kimy Stores estimates that direct labour costs will be increased by 8% while other costs remain constant i) Due to excellent cost. control, direct material cost and variable selling expenses is expected to reduced by 8% and 10% respectively in 2022. Calculate the selling price per unit that should be charged in order to maintain the original contribution-margin ratio. (Round to two decimal places). iv) QUESTION 8 Kimy Stores produces and sells baby product called "YUMMY". For 2021, the Stores had the following Statement of Comprehensive Income. RM Direct material 35.00 Direct labour 12.00 Manufacturing overhead Selling expenses Total variable cost per unit 6.00 2.00 55.00 Selling price per unit 85.00 Annual fixed costs 434,000 352.000 786,000 Selling and administration Manufacturing overhead Total fixed costs You are required to: Answer each question independently of each other. Calculate the break-even point in units and value for Kimy Stores for 2021. Calculate how many units, Kimy Stores need to sell in order to earn RM620,000 profit in 2020. i) Calculate how many units to be sold in 2021 in order to operate at break-even point if Kimy Stores estimates that direct labour costs will be increased by 8% while other costs remain constant i) Due to excellent cost. control, direct material cost and variable selling expenses is expected to reduced by 8% and 10% respectively in 2022. Calculate the selling price per unit that should be charged in order to maintain the original contribution-margin ratio. (Round to two decimal places). iv)

Answer rating: 100% (QA)

B C D E F Question i Selling Price per unit LessVaribale Cost 1 RM 8500 2 3 Direct Material RM 3500 ... View the full answer