Reference no: EM133040496
Question - i. A&Z Company sells products both domestically and internationally. Fixed costs totalled RM5,000,000 last year. In an effort to increase its total sales volume, A&Z plans to spend an additional RM1,280,000 in advertising next year. Expected average prices and variable costs appear below.
|
|
Domestic
|
International
|
|
Price per unit
|
RM50
|
RM40
|
|
Variable costs per unit
|
RM30
|
RM16
|
Because of the increased advertising, A&Z expects to sell 300,000 units domestically and 200,000 units internationally next year.
Required - Using the expected sale mix, determine the number of units that A&Z must sell in each market to meet the breakeven point.
ii. L-Tech Sdn Bhd prepare a manufacturing budget for an output of 50,000 units as follows:
RM
Direct material 100,000
Direct labor 50,000
Variable Ohd 75,000
Fixed overhead 100,000
Actual unit was stated at 60,000 unit of output with RM110,000 cost on direct materials; RM60,000 of direct labor; RM100,000 of variable ohd and RM97,000 of fixed overhead.
Required - Prepare and evaluate the performance report of the company using flexible budget.