90.2K

Verified Solution

Link Copied!

The following information is given by XYT Co: - Monthly sales: RM300,000 January, RM280,000 February, RM 250,000 March. Collection method is half in the month of sales and another half in the following month. - Cash purchases: RM50,000 January, RM60,000 February, RM 50,000 March. - Credit Purchase: RM50,000 January, RM60,000 February, RM 60,000 March. Payment made in the following month of purchase. - Utilities and Operational cost RM20,000 and RM30,000 each month. - A loan received from ABM Financing at the beginning of the year in January is RM40,000. This loan will be paid at the beginning of March with interest of 10% per month. - Motor Vehicle RM10,000, a deposit paid in cash RM5,000 in March. - Bank balance on the last day of December last year was RM50,000. Required: Prepare a cash budget for the 1st Quarter of the year. Fifa Company has a product that sells for $160 per unit. The Material Cost, Variable labour cost are $40 per unit and $60 per unit, and fixed expenses total $180,000 per year. Required: i. Calculate contribution margin ratio for the product. ii. Calculate the break-even point. iii. The marketing manager wants to increase advertising by $24,000 per year. How many additional units would have to be sold to increase overall net operating income by $40,000

Answer & Explanation Solved by verified expert

See Answer