Question 1

Determine the basic training unit contribution margin and the break-even point number of participants in the current year.

Question 2

Assuming that the training fee remains constant at RM30 per participant, compare ADMC’s operating income (per training session) if the sales of DVDs are incorporated with the training in the current year and 2013 (anticipate with new costs).

Question 3 

Do you suggest that Diyana increase the fee? If so, what would be the new fee? Explain.

Question 4

Do you think the promotional strategy taken by Diyana was effective? Please justify your answer.

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