1.Estimate the additional operating income that Mr. Jasin would earn if sales wereRM50,000 more than expected. 2.At the break-even point, Jefri Company sells 115,000 units and has a fixed cost ofRM349,600. The variable cost per unit is RM4.56. Estimate the price that Jefri has tocharge per unit. Jasin Company projected operating income (based on sales of 450,000 units) for thecoming year as follows:Table 4: Operating Income StatementRM11,700,0008,190,0003,510,0002.254.2001,255,800DetailsSalesTotal variable costContribution marginTotal fixed costOperating income

Solution 1: Contribution margin ration is the proportion of contribution margin to sales. Same is…

Jasin Company projected operating income (based on sales of 450,000 units) for the coming year as follows: Table 4: Operating Income Statement RM 11,700,000 8,190,000 3,510,000 2.254.200 1,255,800 Details Sales Total variable cost Contribution margin Total fixed cost Operating income

Jasin Company projected operating income (based on sales of 450,000 units) for the coming year as follows: Table 4: Operating Income Statement RM 11,700,000 8,190,000 3,510,000 2.254.200 1,255,800 Details Sales Total variable cost Contribution margin Total fixed cost Operating income

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 16E

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Concept explainers

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

Question

1.Estimate the additional operating income that Mr. Jasin would earn if sales were
RM50,000 more than expected.

2.At the break-even point, Jefri Company sells 115,000 units and has a fixed cost of
RM349,600. The variable cost per unit is RM4.56. Estimate the price that Jefri has to
charge per unit.

Jasin Company projected operating income (based on sales of 450,000 units) for the
coming year as follows:
Table 4: Operating Income Statement
RM
11,700,000
8,190,000
3,510,000
2.254.200
1,255,800
Details
Sales
Total variable cost
Contribution margin
Total fixed cost
Operating income

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