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Ashiq Enterprise produces two types of sandals for men known as Segak and Tampan. The...

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Ashiq Enterprise produces two types of sandals for men known as Segak and Tampan. The sales and cost information for the coming year, segmented by product line are as follows: Segak Tampan Total (RM) (RM) (RM) Sales 300,025.00 240,030.00 540,055 Less: Total variable cost (90,007.50) (108,013.50) (198,021) Contribution margin 210,017.50 132,016.50 342,034 Common fixed cost 68,000 (68,000) Operating income 274,034 The selling prices are RM55 for Segak sandals and RM63 for Tampan sandals. Required: (a) Determine the breakeven point for each product in unit and in value. (12 marks) (b) Determine margin of safety in both units and value. Explain the result (6 marks) (c) If the total fixed cost increased by RM12,000, and variable cost increased by 40%, how many units of each sandal type the business needs to sell if Ashiq Enterprise planned to earn a profit of RM25,000 each year? (8 marks)

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