Compute the total variable cost per unit


Question: Elite Sdn Bhd produces a special tumbler "MONPIKO" sold for RM69 per unit. The normal yearly production and sales for the tumblers are 10,000 units. The following data consists of costs incurred during the year ended 2023: Material 100% variable 60,000 Labour 60% variable 70,000 Variable sellin ex enses 18,000 Fixed sellin ex enses 45,000 Fixed administrative ex enses 30,000 Required: a) Compute the total variable cost per unit. (4 marks) b) Compute break-even point in units and value. (8 marks) c) Calculate the sales value if the company targets a profit of RM60,000. (4 marks) d) Calculate the margin of safety in unit and value.

 

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Accounting Basics: Compute the total variable cost per unit
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