BKAS1013: Tutorial 3

BKAL1013
SEM A231
TUTORIAL 3: CVP

Mira Tech Sdn Bhd is a company specializing in manufacturing electronic gadgets. The company
produces and sells a variety of products, including smartphones, tablets, and smartwatches. The
management team is interested in understanding the financial aspects of its operations, and has asked
you, a financial analyst, to perform a Cost-Volume-Profit (CVP) analysis.
The updated information for the year 2023 are as follows:
Sales Information Total Sales Revenue: RM 5,000,000

Cost Information (as a Variable Costs: 40%

percentage of total sales)
 Direct Materials: 20%
 Direct Labor: 10%
 Variable Overhead: 10%
Fixed Costs: 30%
 Salaries and Wages: 15%
 Rent and Utilities: 8%
 Depreciation: 7%

Product Information Average Selling Price per Unit: RM 500

Variable Cost per Unit: RM 200

Using Microsoft Excel, you are required to:

1. Prepare Contribution Margin Statement for Mira Tech Sdn Bhd. Calculate the Net Income.
2. Calculate Contribution Margin Ratio. Express the result as a percentage.
3. Break-Even Analysis
a. Calculate the Break-Even Sales in Units
b. Calculate the Break-Even Sales in Ringgit Malaysia
4. Construct Cost-Volume-Profit (CVP) Chart in Microsoft Excel. Label the axes appropriately and
provide a legend.
5. Determine Margin of Safety. Express the result as a percentage of actual sales.
6. Calculate Operating Leverage. Interpret the result and discuss how changes in sales volume can
impact profitability.
7. Summarize your findings and recommendations for the management of Mira Tech Sdn Bhd.
Submission Instructions:
1. Present the Contribution Margin Statement, Contribution Margin Ratio, Break-Even Analysis, CVP
chart, Margin of Safety and Operating Leverage in the Excel workbook. Make sure the data is
linked to the data source.
2. Each group consists of 3 -5 members. Only one submission per group.
3. The submission is via Online Learning and due by 20 January 2024.
4. You will be assessed using Practical Rubric as attached.

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