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  3. question 2 winwin enterprise's projected profit fo

Question 2 WinWin Enterprise's projected profit for the coming year is as follows: Total Per...

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Question 2 WinWin Enterprise's projected profit for the coming year is as follows: Total Per Unit RM 85 (40) 45 RM 850,000 (400,000) 450,000 (135,000) 315,000 Sales Less: Variable expenses Contribution margin Less: Fixed expenses Operating income Required: a) Compute the break-even point in units. Prepare a Contribution Margin Income Statement to show the zero profit with units of the break-even point. (4 marks) b) How many units must be sold by WinWin Enterprise to earn a profit of RM150,000? (3 marks) c) Compute the contribution margin ratio. Using that ratio, compute the break-even point in ringgit (4 marks) d) Suppose WinWin Enterprise would like to earn an operating income equal to 30% of total sales revenue. Compute how many units must be sold to achieve the goal. (4 marks) e) Compute the new break-even points (in unit and RM) if WinWin Enterprise decided to increase the selling price by 20% and an increase in additional advertisement costs of RM25,000. (5 marks) (Total: 20 Marks)

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