Question Selasih Com pany manufactures aluminium containers for restaurants. The owner of Selasih, Puan Atiqah, believes that an aggressive cam paign is needed next year due to the Malaysian local...

Question 2

Please assist on sub-part c, d in details.

Extracted text: Question Selasih Com pany manufactures aluminium containers for restaurants. The owner of Selasih, Puan Atiqah, believes that an aggressive cam paign is needed next year due to the Malaysian local market's uncertain conditions. Presented below isthe data for the current year 2021, for use in next year's cam paign. COST SCHEDULE Variable Costs per Box Fixed Costs per Month (RM) (RM) Manufacturing: Manufacturing overhead Selling and Administrative 25,000 Direct materials 110,000 Direct labour per unit Total 135,000 Manufacturing overhead 3 Total 15 Puan Atiqah has set the sales target for the year 2022 at a level of RM550,000 (22,000 units of containers), or ten percent more than the sales in the year 2021. The selling price of the container is RM25 each, for both years. Required: a) Prepare a contribution margin income statem ent for the year 2021. b) Calculate Selasih's break-even point in units and ringgit for the year 2021 c) PuanAtiqah believes that to attain the sales in 2022; the company must incur an additional selling expense of RM10,000 for advertising in 2022, with all other costs remaining constant. What will be the break-even point in RM sales for 2022 if the company spends the additional RM10,000? d) "Break-even analysis is of limited use to managem ent because a company cannot survive by just breaking even." Do you agree with the statement? Explain.