Win Engineering Berhad is a company manufactures motor gears for cars and machines. One of its...

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Win Engineering Berhad is a company manufactures motor gears for cars and machines. One of its products, Silicon Gear M. a customised motor gear, is a key component for electric cars that is currently at high demand in the market. The company normally manufactures 10,000 sets of Silicon Gear M per batch and below are the cost data of the production: Manufacturing costs per batch (Each batch-10,000 sets produced) Direct material Direct labour Variable manufacturing overhead Take note: The total fixed costs incur for each batch was RM160,000. i iii. Total RM At the end of December 2022, the company received a proposal to buy from a company from oversea for 30,000 sets of Silicon Gear M at special price of RM98.00 per set. During the meeting, the company director and managers discussed the following matters: 38.50 16.50 7.00 The Director of Win Engineering Berhad was hesitated to accept the proposal because it is below than the selling price. Currently the selling price for each set of Silicon Gear M is RM100.00 per set. The costs accountant analysed and reported that the company needs to bear additional shipping and delivery costs of RM15.50 for each set of Silicon Gear M sold to the oversea company. Required Assume you are the Finance Manager of Win Engineering Berhad. The Factory Manager reported if the company accepts the offer, the production's capacity is unaffected. (b) Prepare the incremental analysis of this proposal and indicate the impact of rejecting and accepting this order to the company's targeted net income. (Note: Show all workings.) (7 marks) Based on your findings in (a), should the Managing Director accept the proposal or otherwise? Do explain the reason. (2 marks) Win Engineering Berhad is a company manufactures motor gears for cars and machines. One of its products, Silicon Gear M. a customised motor gear, is a key component for electric cars that is currently at high demand in the market. The company normally manufactures 10,000 sets of Silicon Gear M per batch and below are the cost data of the production: Manufacturing costs per batch (Each batch-10,000 sets produced) Direct material Direct labour Variable manufacturing overhead Take note: The total fixed costs incur for each batch was RM160,000. i iii. Total RM At the end of December 2022, the company received a proposal to buy from a company from oversea for 30,000 sets of Silicon Gear M at special price of RM98.00 per set. During the meeting, the company director and managers discussed the following matters: 38.50 16.50 7.00 The Director of Win Engineering Berhad was hesitated to accept the proposal because it is below than the selling price. Currently the selling price for each set of Silicon Gear M is RM100.00 per set. The costs accountant analysed and reported that the company needs to bear additional shipping and delivery costs of RM15.50 for each set of Silicon Gear M sold to the oversea company. Required Assume you are the Finance Manager of Win Engineering Berhad. The Factory Manager reported if the company accepts the offer, the production's capacity is unaffected. (b) Prepare the incremental analysis of this proposal and indicate the impact of rejecting and accepting this order to the company's targeted net income. (Note: Show all workings.) (7 marks) Based on your findings in (a), should the Managing Director accept the proposal or otherwise? Do explain the reason. (2 marks) Win Engineering Berhad is a company manufactures motor gears for cars and machines. One of its products, Silicon Gear M. a customised motor gear, is a key component for electric cars that is currently at high demand in the market. The company normally manufactures 10,000 sets of Silicon Gear M per batch and below are the cost data of the production: Manufacturing costs per batch (Each batch-10,000 sets produced) Direct material Direct labour Variable manufacturing overhead Take note: The total fixed costs incur for each batch was RM160,000. i iii. Total RM At the end of December 2022, the company received a proposal to buy from a company from oversea for 30,000 sets of Silicon Gear M at special price of RM98.00 per set. During the meeting, the company director and managers discussed the following matters: 38.50 16.50 7.00 The Director of Win Engineering Berhad was hesitated to accept the proposal because it is below than the selling price. Currently the selling price for each set of Silicon Gear M is RM100.00 per set. The costs accountant analysed and reported that the company needs to bear additional shipping and delivery costs of RM15.50 for each set of Silicon Gear M sold to the oversea company. Required Assume you are the Finance Manager of Win Engineering Berhad. The Factory Manager reported if the company accepts the offer, the production's capacity is unaffected. (b) Prepare the incremental analysis of this proposal and indicate the impact of rejecting and accepting this order to the company's targeted net income. (Note: Show all workings.) (7 marks) Based on your findings in (a), should the Managing Director accept the proposal or otherwise? Do explain the reason. (2 marks) Win Engineering Berhad is a company manufactures motor gears for cars and machines. One of its products, Silicon Gear M. a customised motor gear, is a key component for electric cars that is currently at high demand in the market. The company normally manufactures 10,000 sets of Silicon Gear M per batch and below are the cost data of the production: Manufacturing costs per batch (Each batch-10,000 sets produced) Direct material Direct labour Variable manufacturing overhead Take note: The total fixed costs incur for each batch was RM160,000. i iii. Total RM At the end of December 2022, the company received a proposal to buy from a company from oversea for 30,000 sets of Silicon Gear M at special price of RM98.00 per set. During the meeting, the company director and managers discussed the following matters: 38.50 16.50 7.00 The Director of Win Engineering Berhad was hesitated to accept the proposal because it is below than the selling price. Currently the selling price for each set of Silicon Gear M is RM100.00 per set. The costs accountant analysed and reported that the company needs to bear additional shipping and delivery costs of RM15.50 for each set of Silicon Gear M sold to the oversea company. Required Assume you are the Finance Manager of Win Engineering Berhad. The Factory Manager reported if the company accepts the offer, the production's capacity is unaffected. (b) Prepare the incremental analysis of this proposal and indicate the impact of rejecting and accepting this order to the company's targeted net income. (Note: Show all workings.) (7 marks) Based on your findings in (a), should the Managing Director accept the proposal or otherwise? Do explain the reason. (2 marks)

Answer rating: 100% (QA)

a Incremental Analysis Sales revenue from 30000 sets of Silicon Gear M at RM9800 per set 30000 x RM9... View the full answer