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. (7 marks)

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

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