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Question 1

Tycoon makes and sells 600 toy cars per month. Each toy car is sold for RM40 each. Tycoon is currently producing at 60% of its full capacity. At this level of output, the total costs are RM22,000 of which RM10,000 are fixed.


a) Calculate the followings:
• contribution margin per unit and ratio
• breakeven in sales units and in sales value
• Sales value in RM required to achieve $18,000 profit.

b) In achieving the $18000 profit, what is the margin of safety in RM value and ratio. c) If Tycoon were to operate at full capacity, calculate the followings:

i) number of units produced that will be sold.
ii) Total variable cost
iii) total profit to be earned

d) Prepare profit statement using marginal costing based on the current level of production and based on maximum capacity.

Question 2

The following trial balance has been extracted from the accounting records of Timmer Furniture for the year ended 31 October 2010:

| |RM | |RM | |Capital as at 1 November 2009 | | |89,840 | |Motor vehicle – at cost |45,600 | | | |Office equipment – at cost |60,000 | | | |Provision for depreciation – motor vehicle | | |19,000 | | – office equipment | | |15,750 | |Purchases and Sales...
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