Question: RM Sales (5,000 units at RM4 per unit) 20,000 Variable costs ( direct materials, direct labour, etc.) 8,000 Contribution 12,000 Fixed cost 7,500 Profit 4,500

RM

Sales (5,000 units at RM4 per unit) 20,000

Variable costs ( direct materials, direct labour, etc.) 8,000

Contribution 12,000

Fixed cost 7,500

Profit 4,500

1. Calculate the selling price to be charged to earn a profit of RM22,500 on sales of 10,000 units .

2.Based on scenario of this section above. Calculate the margin of safety.

3.Based on scenario of this section above. Determine the sales level (in RM) to achieve a target profit of RM22,500

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