Total fixed cost Unit Contribution Margin Break even Point in Unit RM350

Total fixed cost unit contribution margin break even

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Total fixed cost ÷ Unit Contribution Margin = Break-even Point in Unit = RM3.50 (rounding out figures) RM28,419,082 ÷ RM16.50 = 1,722,369 units Break-even Point in Ringgit Total Fixed Cost ÷ Contribution Margin Ratio = Break-even Point in Ringgit 28,419,082 ÷ 82.5% = RM34,447,372 3 Prepare the cost-volume-profit (CVP) graph showing the behavior of the fixed cost and variable costs elements
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4 Determine the new break-even point when there are any changes in the variable cost Assuming that the total variables cost increase 50% from the total variable cost given amounting to RM 62,540,790 New Variable Cost RM93,811,185 Variable Cost Per Unit = RM93811185 ÷ 18,000,000 = RM5.20 Unit Contribution Margin Selling Price per unit - Variable Cost per unit = Unit Contribution Margin Amount (RM) Selling Price per bag 20 (-) Variable Cost per bag 5.2 Unit Contribution Margin 14.8 Contribution Margin in Ratio Unit Contribution Margin ÷ Selling Price Per Unit = Contribution Margin in Ratio RM14.80 ÷ RM20 = 74% Break-even Point in Unit Total fixed cost ÷ Unit Contribution Margin = Break-even Point in Unit RM28,419,082 ÷ RM14.80 = 1,920,208 units Break-even Point in Ringgit Total Fixed Cost ÷ Contribution Margin Ratio = Break-even Point in Ringgit 28,419,082 ÷ 74% = RM38,404,164.90 5 Explain the margin of safety Actual (expected) sales - break-even sales = Margin safety in Ringgit RM360,000,000 - RM34,447,372 = RM325,552,628
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  • Spring '19
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