In 2020, Oriental Company sold 800 units at RM500 each. Variable costs were RM250 per unit,...

In 2020, Oriental Company sold 800 units at RM500 each. Variable costs were RM250 per unit, and fixed costs were RM200,000. The selling price is expected to increase by 10% for 2021 and unit sold is 1,250 units. Oriental Company is tentatively planning to invest in equipment that would increase fixed costs to RM255,000, while decreasing variable costs per unit by 12%.
Instructions
(a) Compute the break-even point in Ringgit Malaysia (RM) for the year 2020 by using mathematical equation. (Show all workings).
(b) Compute the break-even point in Ringgit Malaysia (RM) for the year 2021 by using mathematical equation. (Shows all workings).
(c) Compute the total sales in Ringgit Malaysia (RM) that the company need to generate, if the company wish to earn net income of RM900,000 in the year 2021 by using mathematical equation. (Shows all workings).
(d) Compute margin of safety in Ringgit Malaysia (RM) and in ratio for the year 2021. (Show all workings).

Expert Solution

ekkarill92 answered 1 year ago

Acme Company sold 500 units for $450 each. Variable costs were $275 per unit, and total...

Acme Company sold 500 units for $450 each. Variable costs were $275 per unit, and total fixed expenses were $53,000. Prepare a contribution margin income statement. . Scottso Enterprises has presented the following information for the past eight months operations: Month Units Total Cost Aprl 4,000 $ 17,000 May 3,200 $ 14,900 June 1,400 $ 11,100 July 2,800 $ 13,200 August 3,500 $ 16,000 September 4,200 $ 17,400 October 3,900 $ 16,500 November 3,400 $ 15,700 a. Using the high-low...

Pearson Company sold 5,000 units for $50 each. Variable costs were $28 per unit and total fixed expenses were $20,350.

__________________________________________________________________________ Pearson Company sold 5,000 units for $50 each. Variable costs were $28 per unit and total fixed expenses were $20,350. What is Pearson's total contribution margin? What is the breakeven in terms of units for Pearson? What is Pearson's net income? __________________________________________________________________________ Ava’s Creations sells two products. A and B. The weighted average per unit is $40 and Ava’s fixed costs are $24,800. The sales mix is 30% for A and 70% for B. How many units of...

Jason, Inc. sold 90,000 units last year for $2.50 each. Variable costs per unit were $0.30...

Jason, Inc. sold 90,000 units last year for $2.50 each. Variable costs per unit were $0.30 for direct materials, $0.50 for direct labor, and $0.30 for variable overhead. Fixed costs were $60,000 in manufacturing overhead and $40,000 in nonmanufacturing costs. a. What is the total contribution margin? b. What is the unit contribution margin? c. What is the contribution margin ratio? d. If sales increase by 15,000 units, by how much will profits increase?

Orion, Inc. sold 17,000 units last year for $50 each. Variable costs per unit were $20...

Orion, Inc. sold 17,000 units last year for $50 each. Variable costs per unit were $20 for direct materials, $15 for direct labor, and $10 for variable overhead. Fixed costs were $10,000 in manufacturing overhead and $50,000 in nonmanufacturing costs. a. What is the total contribution margin? b. What is the unit contribution margin? c. What is the contribution margin ratio? d. If sales increase by 5,000 units, by how much will profits increase?

Question #1: Orion, Inc. sold 17,000 units last year for $50 each. Variable costs per unit...

Question #1: Orion, Inc. sold 17,000 units last year for $50 each. Variable costs per unit were $20 for direct materials, $15 for direct labor, and $10 for variable overhead. Fixed costs were $10,000 in manufacturing overhead and $50,000 in nonmanufacturing costs. a. What is the total contribution margin? b. What is the unit contribution margin? c. What is the contribution margin ratio? d. If sales increase by 5,000 units, by how much will profits increase? Question #2: Acme Company...

Penny Company sells 25,000 units at $59 per unit. Variable costs are $29 per unit, and...

Penny Company sells 25,000 units at $59 per unit. Variable costs are $29 per unit, and loss from operations is ($50,000). Determine the following: Round the contribution margin ratio to one decimal place. a. Unit contribution margin $ per unit b. Contribution margin ratio % c. Fixed costs per unit at production of 25,000 units $ per unit

Given Sales in units 10,000 Variable manufacturing costs per unit 5 Variable administrative costs per unit...

Given Sales in units 10,000 Variable manufacturing costs per unit 5 Variable administrative costs per unit 2 Fixed manufacturing costs per unit 2 Fixed administrative costs per unit 1 Variable costs 75% of sales Selling price per unit? $2.22 $9.33 $17.50 $20 Given for XM Company the following data for January 20X1. Direct material purchased and used in production accounted for $ 50000 Units purchased 5000 The standard units 4200 Managers estimate price variance not to exceed +1% of the...

2.) Harry Company sells 27,000 units at $34 per unit. Variable costs are $21.08 per unit,...

2.) Harry Company sells 27,000 units at $34 per unit. Variable costs are $21.08 per unit, and fixed costs are $160,500. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations. a. Contribution margin ratio (Enter as a whole number.) % b. Unit contribution margin (Round to the nearest cent.) $ per unit c. Income from operations $ 3.) Megan Company has fixed costs of $505,920. The unit selling price, variable cost per unit,...

Fixed costs are $3,000, variable costs are $5 per unit. The company will manufacture 100 units...

Fixed costs are $3,000, variable costs are $5 per unit. The company will manufacture 100 units and chart a 50% markup. Using the cost-plus pricing method, what will the selling price be?

Plymouth Corp. sells units for $100 each. Variable costs are $75 per unit, and fixed costs...

Plymouth Corp. sells units for $100 each. Variable costs are $75 per unit, and fixed costs are $200,000. If Plymouth leases a new machine, fixed costs will increase by $60,000 a year, but production will be more efficient, saving $5 per unit. At what level of production will Plymouth be indifferent between leasing and not leasing the new machine?

Question