round button
Offline


question archive Sinar Harapan Industries produces thin limestone sheets used for cosmetic facing on buildings

Sinar Harapan Industries produces thin limestone sheets used for cosmetic facing on buildings

Subject:AccountingPrice: Bought3

Sinar Harapan Industries produces thin limestone sheets used for cosmetic facing on buildings. The following income statement represents the operating results for the year just ended. The company had sales of 1,800 tonnes during the year. The manufacturing capacity of the firm's facilities is 3,000 tonnes per year. (Ignore income taxes). Sinar Harapan Industries Income Statement For the Year Ended December 31, 2021 RM 900,000 Sales Variable costs Manufacturing Selling costs Total variable costs Contribution margin RM 315,000 180,000 RM 495,000 RM 405,000 Fixed costs: Manufacturing Selling Administrative Total fixed costs Net income RM 100,000 107,500 40,000 RM 247,500 RM 157.500 Required: 1. Calculate the company's break-even volume in tonnes for 2021. 2. If the sales volume is estimated to be 2,100 tonnes in the next year, and if the prices and costs stay at the same levels and amounts, what is the net income that management can expect for 2022? 3. Sinar Harapan has been trying for years to get a foothold in the Southeast Asian market. The company has a potential Brunei customer that has offered to buy 1,500 tonnes at RM450 per tonne. Assume that all of the firm's costs would be at the same levels and rates as in 2021. What net income would the firm earn if it took this order and rejected some business from regular customers so as not to exceed capacity?

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE
a