LOVE Enterprise is a seller of cupcakes. The variable cost is RM4 per unit and the fixed cost is RM800 for a month. A cupcake is sold at RM12.

Required:

(a) Briefly explain the importance of cost-volume-profit analysis for a business. (7marks)

(b) Calculate the contribution margin for a unit of cupcake. (3marks)

(c) Determine the number of cupcakes need to be sold to achieve break-even point. (3marks)

(d) Determine the number of cupcakes that need to be sold to achieve the target profit of RM2,000 for a month. (3marks)

(e) Determine the number of cupcakes that need to be sold to achieve break-even point, if the selling price is reduced by RM1. (3marks)

(f) Determine the number of cupcakes that need to be sold to achieve break-even point, if the fixed cost increases by RM200. Assume the selling price is at RM12 and variable cost is at RM4 per cupcake. (3marks)

(g) Determine the number of cupcakes that need to be sold to achieve break-even point, if the variable cost decreases by RM1. Assume the selling price is at RM12 and fixed cost is at RM800. (3 marks)