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My Story Bookstore is a local bookstore that has been selling teenage novels for a few years. The store manager plans to achieve a minimum

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My Story Bookstore is a local bookstore that has been selling teenage novels for a few years. The store manager plans to achieve a minimum profit of RM6,000 per month. The store must pay for the rent of RM1,500, utilities RM300 and staff salaries amounted to RM2,000 per month. The cost of a novel is expected to increase by 10% due to inflation from the previous cost of RM8.50 per novel. The selling price is RM15.00 per novel. Required: a) Compute the contribution margin per unit of the novel and state the reason why is it important to compute the contribution margin. ( 6 marks) b) Calculate the break-even point in the unit of novels and in Ringgit Malaysia. (6 marks) c) Calculate the number of unit sales to achieve a monthly profit of RM6,000 per month. (6 marks) d) If competitors sell the same novel at RM14.00 each, calculate how many units should My Story Bookstore has to sell to get the same monthly profit if the sale price is to follow the competitor's price. All other costs remain the same. (3 marks) e) Calculate the selling price of a novel if the manager feels that he can sell 4.200 novels next month due to the school holiday season and maintain the same monthly profit. (Note: All the questions below are not related to each other) (4 marks) Required: a) Compute the contribution margin per unit of the novel and state the reason why is it important to compute the contribution margin. (6 marks) b) Calculate the break-even point in the unit of novels and in Ringgit Malaysia. (6 marks) c) Calculate the number of unit sales to achieve a monthly profit of RM6,000 per month. (6 marks ) d) If competitors sell the same novel at RM14.00 each, calculate how many units should My Story Bookstore has to sell to get the same monthly profit if the sale price is to follow the competitor's price. All other costs remain the same. (3 marks) e) Calculate the selling price of a novel if the manager feels that he can sell 4,200 novels next month due to the school holiday season and maintain the same monthly profit. (Note: All the questions below are not related to each other) (4 marks) (Total: 25 Marks)

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