Reference no: EM132942775
Jokowi Bond Sdn Bhd (JBSB) produces a type of box which is sold for RM15 per unit. The normal annual production and sales for the boxes are 20,000 units.
The following data consist of costs incurred during the year ended 2018:
RM
Direct material 80,000
Direct Labour 50,000
Variable selling expenses 30,000
Administrative expenses (60% variable) 60,000
Fixed manufacturing overhead 20,000
The management accountant of the company is proposing the following alternatives to increase sales for the year 2019 and to reduce the idle capacity:
- Reducing the selling price to RM12 per unit which would lead to an estimated increase in the sales volume by 15%.
- An increase in sales would result in an increase of direct labour cost per unit by 10%.
- Fixed manufacturing overhead is also expected to increase to RM25,000 due to an aggressive advertising campaign planned to boost sales.
Required:
Problem a) Calculate the total variable cost per unit and total fixed expenses for the year 2018.
Problem b) Calculate break even unit and sales for 2018.
Problem c) Calculate margin of safety in units and value for 2018.
Problem d) Advise JBSB's management on whether they should implement the proposal outlined above for the year 2019. (Show profit comparison).
|
Prepare journal entries for y corporation to record
: Prepare journal entries for Y Corporation to record the Fiscal Year 2020 operating results of X Company under the equity method.
|
|
What is the value of an american call option on xyz shares
: What is the value of an American call option on XYZ shares, with an exercise price of $125 and two months to expiration? Use the binomial model
|
|
Explain how the crisis would have been prevented
: Using the principles and examples from the 2008 financial crisis in the USA, critically explain how the crisis would have been prevented
|
|
What is the cost of the direct materials used in production
: What is the cost of the direct materials used in production during July? During July, the direct labour cost was RM43,500, raw material purchases.
|
|
Calculate the total variable cost per unit and total fixed
: Calculate the total variable cost per unit and total fixed expenses for the year 2018. Jokowi Bond Sdn Bhd (JBSB) produces a type of box which is sold for RM15
|
|
Find which shall be excluded in the contract costs
: Find which shall be excluded in the contract costs of a construction contract? Percentage of Completion is favored to be used under the following circumstances?
|
|
Calculate the net present value for trax ltd
: The company relies on marketing programmes, Calculate the net present value (NPV), internal rate of return (IRR) and payback period (Pb) for the replacement.
|
|
Find what is depreciation expense for geek corporation
: In 2018, Game changed its estimates to a useful life of 5 years with a salvage value of 70,000. What is 2018 depreciation expense?
|
|
Compute for the adjusted accounts payable on december
: Compute for the adjusted accounts payable on December 31, 2018. On December 28, 2018, a vendor authorized ABC to return for full credit goods shipped
|