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helpb ) A bakery sells cupcakes for RM 2 . 5 0 each and has a fixed monthly cost of RM 3 , 0 0

helpb) A bakery sells cupcakes for RM 2.50 each and has a fixed monthly cost of RM 3,000.
Currently, the variable cost per cupcake is RM 1.00. Due to the bad delivery services of
the existing supplier, the bakery is considering switching suppliers which would
decrease the variable cost to RM 0.80 per cupcake. Determine the potential cost saving
if the bakery switches suppliers and produces 1000 cupcakes and discuss how the
variable cost could impact the cost saving in a business operation. [Hint: You need to
compare the total cost to produce the cupcakes from both suppliers]
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