Solution-Explain relevant qualitative factors

Explain relevant qualitative factors

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Reference no: EM132617096

Gina runs a restaurant, Kedai Makan Ginger in Pekan Gemas. The rental cost of the restaurant is RM7,500. Additional information is given below:

Sales RM96,000

Direct material RM 21,500

Direct labour RM 27,100

Variable overhead RM 13,500

Gina plans to expand its business by renting a new restaurant in Pekan Nenas. With that plan, the cost of direct labour will increase by 30% and there will be an increase in its variable overhead by RM2,500.

Problem a) Should this new plan be accepted? Justify your answer by showing the relevant calculations.

Problem b) Explain the relevant qualitative factors that need to be considered when making decision on whether to accept or reject the special order for Kedai Makan Ginger.

Reference no: EM132617096

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Explain relevant qualitative factors

Reference no: EM132617096

Reference no: EM132617096

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