| Financial Information: | | TV tables | dining Tables | Chairs | | Selling Price per unit | SAR 1,000 | SAR 5,000 | SAR 700 | | Direct Materials cost per 1 Kg of wood timber | SAR 50 | SAR 50 | SAR 50 | | Kg of wood timber required per unit | 10 | 35 | 5 | | Direct Labour hour cost | SAR 30 | SAR 30 | SAR 30 | | Sales commission per item sold | SAR 10 | SAR 15 | SAR 5 | | Variable manufacturing overhead per unit | SAR 20 | SAR 24 | SAR 18 | | Number of labour hours per unit | 3 | 4 | 2 | | Budgeted sales in units | 300 | 200 | 450 | Additional Information: Other costs: Production manager annual salary SAR 60,000 Annual marketing costs SAR 10,000- related to TV tables General Expenses SAR 5,000 Annual Fixed manufacturing overhead (excluding depreciation) SAR10,000 (20% relates to TV tables) Annual equipment depreciation SAR 10,000 The company had 8 TV tables and 100 kg of wood timber in stock at the end of September. Company policy is to maintain 20% of the following months sales level as closing inventory for finished goods. Company policy to maintain 25% of next months production needs as closing inventory for direct materials. Budgeted sales of TV tables for the next six months are as follows: | October | November | December | January | February | | 40 | 35 | 20 | 20 | 20 | Cash collections on sales are as follows: 30% in the month of sale 70% in the month following sale Receivables at the end of September were SAR 22,000 Cash payments on purchases are as follows: 60% in the month of purchase 40% in the following month Payables at the end of September were SAR 6,000 The closing cash balance in September 2018 was SAR 40,000 and it is company policy to maintain cash at this level at the end of each month. The company have access to a 4% bank loan of SAR 70,000 The company paid a dividend of SAR 40,000 in November Cash of SAR 50,000 was invested in the company by a private investor in December. Using the information above, calculate the following: 1. Which product is performing the best? 2. Calculate the overall break-even point in sales value for the company 3. If the selling price of TV tables is increased to SAR 1,200 per unit, what would be the new overall profit? 4. Refer to original data, what level of sales must the company achieve to make a profit of SAR 1,500,000? | 
