Zarith Bhd estimates that variable costs will be 50% of sales and fixed costs will total RM 1,600,000. their selling price of the product is RM 8 per unit where 500,000 units are budgeted to be sold. Required: a) compute the BEP in units and RM using the contribution margin approach b) Compute the margin of safety in units, RM and ratio c) If Zarith Bhd wants to earn a net profit of RM 800,000, how many units must be sold?

Q&A Education