The Super Watch Company manufactures high quality quarts watches. For the current year, sales are 15,000 watches at RM 350.00 each. Information on manufacturing and selling and administrative expenses are follows:

Manufacturing costs:

Direct material RM 120.00 per watch

Direct labour RM 75.00 per watch

Variable overheads RM 10.00 per watch

Fixed overheads RM 100,000 per annum

Selling and administrative expenses:

Variable RM 5.00 per watch

Fixed RM 100,060 per annum

Required: (a) Compute the contribution margin

(b) Calculate the contribution margin percentage

(c) Calculate the break even point in units and Ringgit

(d) The margin of safety in units

Answer rating: 100% (QA)

a Contribution Margin Sales Revenue Variable Costs Contribution Margin 15000 ... View the full answer