Question

RMN produces and sells three products. The details of each products has been given in the...

RMN produces and sells three products. The details of each products has been given in the statement below. RMN's fixed costs are RM330,000 per period. Budgeted sales revenue for next period is RM650,000 in the standard mix.

Product E

Product F

Product G

RM per unit

RM per unit

RM per unit

Selling price

45

25

21

Variable cost

13

6

9

Maximum demand (units)

26,000

14,000

12,000

Required:


Calculate the margin of safety in terms of sales revenue and also as a percentage of budgeted sales revenue.

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