Question 10 Kicker Sdn Bhd (KSB) had the following sales and cost experience for
ID: 2435831 • Letter: Q
Question
Question 10 Kicker Sdn Bhd (KSB) had the following sales and cost experience for May of the current year (2017) and for May of the prior year (2016). May 2017 (RM) May 2016 (RM) 43,560 41,700 Total sales Less: Purchase price paid Additional labour and supplies Commissions Contribution margin Less: Fixed warehouse cost Fixed administrative cost Fixed selling cost Research and development Operating income 17,000 1,400 1,250 23,910 16,000 1,200 1,100 23,400 680 4,300 5,600 9,750 3,580 500 4,300 5,000 4,000 9,600 In May of the prior year, KSB started an intensive quality program designed to enable it to build original equipment manufacture (OEM) speaker system for a major automobile company. The program was housed in research and development. In the beginning of the current year, KSB's accounting department exercised tighter control over sales commisions, ensuring that no double payments were made. The increased sales in the current year requred additional warehouse space that KSB need to rent in town. Required a) Calculate the contribution margin ratio for May 2016 and 2017. b) Calculate the break even point in RM for May 2016 and 2017. ?--cl_CalculatethemarginofsafetyinRMforMay2016 and2017,Explanation / Answer
Computation of Contribution Margin Ratio May-17 May-16 Contribution Margin 23,910 23,400 Total Sales 43,560 41,700 Contribution Margin Ratio 54.89% 56.12% Computation of Break Even point May-17 May-16 Fixxed Cost 20,330 13,800 Contribution Margin Ratio 54.89% 56.12% Break Even Point in RM ( Fixed Cost/ CM Ratio) 37,038 24,592 Computation of Margin of Safety May-17 May-16 Total Sales 43,560 41,700 Break Even Point in RM 37,038 24,592 Margin of Safety In RM 6,522 17,108
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.