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ASSIGNMENT 2 (CLO 3) Sarah sells pastry and cakes in the area of Shah Alam. Her famous cake, Biscoffi Caramel is sold at the price
ASSIGNMENT 2 (CLO 3) Sarah sells pastry and cakes in the area of Shah Alam. Her famous cake, Biscoffi Caramel is sold at the price of RM110 each. The cost of making a cake is RM65 and its annual fixed cost is RM49,500. She plans to expand her business to Bangi. As the management accountant, you are required to advise Sarah on the following matter: a) Calculate the contribution margin and contribution margin rate of the cake. (6) b) Determine: . the number of cakes that has to be sold to achieve break-even point. (3) . the sales revenue to achieve break-even point
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