Question: The following information is given for Rise Up Sdn.Bhd: Unit sales price Variable cost per unit Total Fixed cost RM15 RM7 RM55,000 Required: a)
The following information is given for Rise Up Sdn.Bhd: Unit sales price Variable cost per unit Total Fixed cost RM15 RM7 RM55,000 Required: a) Calculate the Contribution margin per unit. b) Contribution margin ratio. c) Break-even sales in the unit and RM. d) Sales in units required to achieve a net income of RM5,000. e) Sales in units required to achieve a net income of 15% of sales. (2 marks) g) Briefly explain what margin of safety is and its use. (2 marks) (4 marks) (3 marks) (3 marks) f) Assume the budgeted sales of RM150,000 with a break-even sales level of RM125,000. What is the margin of safety for Rise Up Sdn Bhd? (3 marks) (3 marks)
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