Question 1 (10 marks)

Zan Bun Bhd is the sole producer of cakes in the Changlun region. The company only produces one type of cake, and it is sold at RM10 each. The cost for making a cake is RM5 and the fixed cost of the company is RM50,000 per annum.

You are required to:

1. Determine the contribution margin per cake and the contribution margin rate
2. Determine the number of cakes that has to be sold to achieve the break-even point
3. Determine the sales revenue to achieve the break-even point of the company
4. Calculate the number of cakes that has to be sold to achieve a profit of RM30,000 a year (use the equation method).
5. If the company reduces the price of a cake from RM10 to RM9, the demand will increase by 25%. What is the break-even point for the company?

PLEASE ANSWER THIS QUESTION AS SOON AS POSSIBLE