(a) Kimberley-Clark makes luxury hampers for sale in a chain of high-class department stores. The following financial information is available in Table Q2. Current output and sales are set at 30,000...


(a)<br>Kimberley-Clark makes luxury hampers for sale in a chain of high-class department<br>stores. The following financial information is available in Table Q2. Current output<br>and sales are set at 30,000 hampers per year, though the fim has the capacity to<br>produce 50,000 hampers per year.<br>Table 2<br>COST ELEMENT<br>PRICE (RM)<br>1. Wholesale price<br>2. Labor and material costs<br>3. Bought-in components<br>4. Overheads<br>80<br>15<br>25<br>800,000<br>(i)<br>Identify and calculate the fixed cost.<br>(11)<br>Identify and calculate the variable cost.<br>(111)<br>Calculate the break-even quantity for the firm.<br>(iv)<br>Calculate the level of profit the firm is making.<br>

Extracted text: (a) Kimberley-Clark makes luxury hampers for sale in a chain of high-class department stores. The following financial information is available in Table Q2. Current output and sales are set at 30,000 hampers per year, though the fim has the capacity to produce 50,000 hampers per year. Table 2 COST ELEMENT PRICE (RM) 1. Wholesale price 2. Labor and material costs 3. Bought-in components 4. Overheads 80 15 25 800,000 (i) Identify and calculate the fixed cost. (11) Identify and calculate the variable cost. (111) Calculate the break-even quantity for the firm. (iv) Calculate the level of profit the firm is making.

Jun 08, 2022
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