gg Network Sdn Bhd is a small bookstore which has been selling comic books in Alam Jaya for two years. The owner, Puan Nur plans to achieve a minimum profit of RM 2,000 in the month of December 2017. According to her, this amount reasonable since during the school holidays in December many students would buy her books to read. Fixed costs which comprise mainly rental and salary are RM 800 monthly. The cost of books expected to increase by 10% from its previous cost of RM 4.90 per book and currently the selling price of each book is RM 7.50 Required:

A. Compute for Puan Nur the new contribution per unit of the comic book. (5 marks)

B. Explain to Puan Nur why is it important to compute contribution margin (8 marks)

C. Calculate the number of comic books that Puan Nur needs to sell in order to achieve the break-even (3 marks)

D. Determine the sales value at the break-even (3 marks) E. Calculate the quantity of sales needed in order to achieve a minimum profit for the month of December 2017 (4 marks) F. State all assumptions of Cost Volume Profit Analysis