SECTION A: Structured Questions (40 marks)

This section consists of TWO (2) questions. Answer ALL questions

Question 1

Serba Boleh Manufacturing Sdn. Bhd. produce three joint products. The following data is available for the month of September 2019:

	Cee	Dee	Eee
Sales price per unit	RM4	RM10	RM12
Output in units	5,000	2,500	2,500
Further processing costs	RM4,000	RM3,000	RM5,000

The business has incurred a joint costs, costing RM20,000. All the products were produced in one process and they are separated to undergo further individual processing.

Required:

1. Apportion the joint cost using output and approximated relative sales value methods. [6 marks]

2. Prepare a statement showing the estimated profit or loss for each product and in total for TWO (2) methods mentioned in (a). [14 marks]

[Total: 20 marks]

Question 2

Luxury Bakery Enterprise makes and sells cheese cakes at a price of RM50 per unit. The variable cost is RM40 per unit and the budgeted fixed cost is RM60,000 per annum. The budgeted sales are 8,000 units.

Required:

1. Define the term breakeven point. [3 marks]

2. Calculate the breakeven point in units and in RM. [5 marks]

3. Calculate the margin of safety in units. [2 marks]

4. Calculate the breakeven point in units if the selling price increases by 10%.

[2 marks]

5. Calculate the required sales in units to be sold if the target profit is RM20,000. [2 marks]

6. Calculate the breakeven point in RM is the fixed cost reduce by 5% and variable cost per unit reduce by 2% whilst the selling price per unit increase by 6%.

[6 marks]

[Total: 20 marks]