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course-accounting and finance

subject-management accounting

Styles Editing Blue Black Sdn Bhd makes only one product which is sold through agents who receive a commission of 7% on selling price. The following information relates to the budgeted cost and sales for the year ended 31 December 2021 by Blue Black Sdn Bhd RM80 RM21 RM11 796 of selling price Selling price per unit Direct material cost per unit Direct Labour cost per unit Variable selling overhead (sales commission) Production overhead Fixed selling overhead Fixed administration overhead Sales RM 1,000,000 RM 650,000 RM 750,000 100,000 units Additional information (1) The production overhead in the table above includes both variable and fixed element and are absorbed on a cost per unit basis. A production overhead cost amounting to RM1,000,000 is at a capacity level of 100,000 units. While a production overfiead cost amounting to RM1,064,000 is at a maximum capacity level of 110,000 units Required: med States PM Required: a Contribution per unit and contribution sales ratio cs ratio. (5 marks) b. The break-even point in units and value (5 marks) c. Determine the target profit at a sales units of 100,000 for each of the following alternative strategies separately (6) Reduce selling price by 10% (5 marks) (11) Spend RM250,000 on special advertising (5 marks) (1) Reduce selling price by 10% and spend RM250,000 on special advertising 5 marks) States (iv) Reduce direct material cost by RM5, reduce selling price by 10% and spend RM250,000 on special advertising (5 marks) (Total: 30 marks)

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