4-TUTORIAL Millennium Communication Bhd produces a magazine which is sold for RM8.50 per copy. During...
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4-TUTORIAL Millennium Communication Bhd produces a magazine which is sold for RM8.50 per copy. During the month of November 2001, 25,000 magazines has been produced and sold. The following costs for the month were made available: Variable costs (per copy) Fixed monthly costs: Depreciation of printing machine Rental of building Workers' salaries Electricity ii. RM 4.00 6,500 11,000 18,000 5,500 You are required to: a. Calculate the break-even point for the magazine in number of copies and in ringgit. (4 marks) b. Calculate the margin of safety for the magazines in number of copies and in ringgit. (4 marks) c. Calculate how many copies should be sold to achieve a target profit of RM75,000, if a selling commission of RM0.50 is given per copy of magazine sold. (4marks) d. Refer to the original data, the marketing manager proposed to make an advertising campaign which would cost RM7,500. The sales is expected to increase by 5,000 copies. Calculate: the net profit if the proposal
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