The following information related to Melati Sdn. Bhd. (MSB) for the product it sells: Sales price...

   

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The following information related to Melati Sdn. Bhd. (MSB) for the product it sells: Sales price Variable cost of goods sold Fixed cost of goods sold RM32 per unit RM15 per unit RM520,000 Variable selling expense 10% of sales price Variable administrative expense RM2.70 per unit Fixed selling expense RM380,000 Fixed administrative expense RM355,500 For the year ended 31 December 2020, MSB produced and sold 122,000 units of product. Required: a) Prepare a Cost Volume Profit (CVP) income statement using the contribution margin format for MSB for 2020. (10 marks) b) Compute MSB's break-even point in units in 2020 using the contribution margin technique. (6 marks) c) Compute MSB's margin of safety in ringgit in 2020. The following information related to Melati Sdn. Bhd. (MSB) for the product it sells: Sales price Variable cost of goods sold Fixed cost of goods sold RM32 per unit RM15 per unit RM520,000 Variable selling expense 10% of sales price Variable administrative expense RM2.70 per unit Fixed selling expense RM380,000 Fixed administrative expense RM355,500 For the year ended 31 December 2020, MSB produced and sold 122,000 units of product. Required: a) Prepare a Cost Volume Profit (CVP) income statement using the contribution margin format for MSB for 2020. (10 marks) b) Compute MSB's break-even point in units in 2020 using the contribution margin technique. (6 marks) c) Compute MSB's margin of safety in ringgit in 2020.

Answer rating: 100% (QA)

a CVP income statement Particulars Amount in RM Amount in RM per unit Sales1220003... View the full answer