- Break Even Analysis 1 (95.59 KiB) Viewed 7 times
BREAK-EVEN ANALYSIS
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answerhappygod
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BREAK-EVEN ANALYSIS
BREAK-EVEN ANALYSIS
Question 7 Star Ltd manufactures decorative clocks. Annual manufacturing costs for the clocks: Total direct material Total direct labour Total indirect costs - variable - fixed Other Annual overhead costs for the clocks: Total variable costs RM4,000 Total fixed costs RM70,000 Star Ltd managed to sell 30,000 decorative clocks in a year, contributed to sales of RM150 000. Required: Treat each question INDEPENDENTLY (a) What is the break-even point (b) (c) RM8,000 RM6,000 RM6,000 RM100,000 (i) in units (ii) in sales value (RM) (6 marks) Assuming there is an increase in fixed costs by RM40,000, what is the required break- even sales units? (4 marks) With an income tax rate of 10%, assuming there is an increase in variable costs by 30%, how many decorative clocks must Star Ltd sell in order to achieve an after tax profit of RM60 000.
Question 7 Star Ltd manufactures decorative clocks. Annual manufacturing costs for the clocks: Total direct material Total direct labour Total indirect costs - variable - fixed Other Annual overhead costs for the clocks: Total variable costs RM4,000 Total fixed costs RM70,000 Star Ltd managed to sell 30,000 decorative clocks in a year, contributed to sales of RM150 000. Required: Treat each question INDEPENDENTLY (a) What is the break-even point (b) (c) RM8,000 RM6,000 RM6,000 RM100,000 (i) in units (ii) in sales value (RM) (6 marks) Assuming there is an increase in fixed costs by RM40,000, what is the required break- even sales units? (4 marks) With an income tax rate of 10%, assuming there is an increase in variable costs by 30%, how many decorative clocks must Star Ltd sell in order to achieve an after tax profit of RM60 000.