Question 2

2 a) Break even units

Formula
Total fixed cost
Contribution/unit

Bee
= RM25,000
RM15-RM10

Zee
= RM72,000
RM35-RM19

= 5,000 units

= 4,500 units

Bee
= RM25,000 x RM15
RM5

Zee
= RM72,000 x RM35
RM16

= RM75,000

=RM157,500

b) Break even value

Formula
Total fixed cost
C/S Ratio

c) The margin of safety (units)

Formula
Bee
Actula sales Qty - Break = 8,200 units-5,000 units
Even Qty (BEP)
= 3,200 units

Zee
= 6,000 units- 4,500 units
= 1,500 units

d) Profit (RM)
Formula
SP - TOC - TFC

Bee
=(8200xRM15) - [(8200xRM10)+RM25000]
=RM123,000- (RM82,000+RM25,000)
=MR123,000 - RM107,000
=RM16,000

Zee
=(6000xRM35) - [6000xRM19)+RM72000
=RM210,000 -(RM114,000+RM72000)
=RM210,000 - RM186,000
=RM24,000

ii) Bee
Output
Unit
0.00
2,500.00
5,000.00
7,500.00
10,000.00
12,500.00

TFC
25,000.00
25,000.00
25,000.00
25,000.00
25,000.00
25,000.00

TVC
T.Cost=
T.Revenue = Profit or Loss
o/p x RM10 TFC + TVC o/p x RM15
0.00
25,000.00
0.00
(25,000.00)
25,000.00
50,000.00
37,500.00
(12,500.00)
50,000.00
75,000.00
75,000.00
0.00 -------> BEP
75,000.00 100,000.00
112,500.00
12,500.00
100,000.00 125,000.00
150,000.00
25,000.00
125,000.00 150,000.00
187,500.00
37,500.00

Zee
Output
Unit
0.00
1,500.00
3,000.00
4,500.00
6,000.00
7,500.00
9,000.00

TFC
72,000.00
72,000.00
72,000.00
72,000.00
72,000.00
72,000.00
72,000.00

TVC
T.Cost=
T.Revenue = Profit or Loss
o/p x RM10 TFC + TVC o/p x RM15
0.00
72,000.00
0.00
(72,000.00)
28,500.00 100,500.00
52,500.00
(48,000.00)
57,000.00 129,000.00
105,000.00
(24,000.00)
85,500.00 157,500.00
157,500.00
0.00 -------> BEP
114,000.00 186,000.00
210,000.00
24,000.00
142,500.00 214,500.00
262,500.00
48,000.00
171,000.00 246,000.00
315,000.00
72,000.00