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Layla, the owner of Bubur Cedok, sells only one product, porridge. The selling price of each porridge is RM6. The average variable cost is RM3.50.
Layla, the owner of Bubur Cedok, sells only one product, porridge. The selling price of each porridge is RM6. The average variable cost is RM3.50. The total fixed cost per month to operate the store is RM1,500. Layla sold 4,000 units of porridge in September 2022. Required: a) Compute the numbers of porridge needed to break even (in unit and RM) (4 marks) b) How much porridge must be sold in order to earn a profit of RM10,000? (2 marks) c) Calculate the margin of safety in units and value. (4 marks) [Total: 10 Marks]
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