View the step-by-step solution to:

In 2018, Adek Sdn Bhd made a sale of RM2,000,000 for three of its products A, B, and C with a sales mix of 50%, 20% and 30% respectively. The fixed...

2. In 2018, Adek Sdn Bhd made a sale of RM2,000,000 for three of its products A, B, and C with a sales mix of 50%, 20% and 30% respectively. The fixed cost is RM 30,000 per month. The production and sales information of these three products are as follows:

Product A B C

Total cost/unit (RM) 38 50 40

Fixed cost/unit 25% of total cost 20% of total cost 30% of total cost

Sales price/unit (RM) 40 55 45 

 

Required:

a. Determine the company's break-even point (in sales value) and margin of safety (in sales value) for the year.

b. The projected sales for the following year for products A, B, and C are RM800,000, RM500,000 and RM900,000 respectively. Calculate the revised break-even point (in sales value) 

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question